The effects of trade deficit on output and employment: evidence from the U.S.’s economy
Tuan Le and
William Baker ()
Additional contact information
William Baker: West Virginia Wesleyan College
International Economics and Economic Policy, 2020, vol. 17, issue 4, No 4, 877-895
Abstract This paper investigates the effect a trade deficit has on GDP in the United States and if the effect is being lessened by the income and substitution effect. Employment will also be discussed in this paper as regression and cointegration analysis will be used to see what effect technology and the trade deficit have on employment in the manufacturing sector. The results suggest that trade deficit has a small negative effect on GDP. In addition, we find that technology advancement has more impact on employment than the trade deficit.
Keywords: Trade deficit; Consumption; Employment; Income effect; Substitution effect; F14; F66 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10368-020-00464-4 Abstract (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:iecepo:v:17:y:2020:i:4:d:10.1007_s10368-020-00464-4
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2
Access Statistics for this article
International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter
More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().