Import competition and domestic transport costs

Michiel Gerritse and Andrea Caragliu

No 22-071/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: With China’s 2001 WTO accession, trade costs between the US and China fell sharply, but the transport costs of Chinese imports within the US remained sizable. We argue that domestic transport costs shield local labor markets from globalization. Using a shift-share design for industry-level Chinese imports across 42 ports of entry, we show that US job losses from competing imports occurred near the ports where they arrived. Once accounting for domestic transport costs, import competition affects coastal areas more than inland areas; shows larger impacts in housing markets and indirectly affected jobs; and explains voting, mortality and family formation

Keywords: import competition; local labor markets; trade infrastructure; China syndrome; transport costs (search for similar items in EconPapers)
JEL-codes: E24 F14 F16 J23 J31 L60 O47 R12 R23 (search for similar items in EconPapers)
Date: 2022-09-29
New Economics Papers: this item is included in nep-cna, nep-int, nep-lma and nep-tre
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