Advertisement

Trade Globalization and the US Economy

  • Anthony Elson
Chapter

Abstract

This chapter examines the costs and benefits of trade integration for the US economy. The economic arguments in favor of trade liberalization are first reviewed in order to identify the particular assumptions and mechanisms by which it provides both benefits and costs for trading partners. The critical role of government policy in facilitating labor market adjustments for those workers adversely affected by trade developments is also discussed. Three case studies of important trade issues for the US economy are examined: (1) the economic impact of trade opening with China since the beginning of the current century; (2) the expected benefits of the Trans-Pacific Partnership, had it been adopted by the United States; and (3) the effects of NAFTA on domestic output and employment.

References

  1. Acemoglu, Daron, et al. 2016. Import Competition and the Great US Employment Sag of the 2000s. Journal of Labor Economics 34 (S1): 141–198.CrossRefGoogle Scholar
  2. Amiti, Mary, et al. 2017. China’s WTO Entry Benefits US Consumers. VOX CEPR Policy Portal (voxeu.org), June 28, 2017.
  3. Autor, David, et al. 2015. Untangling Trade and Technology: Evidence from Local Labor Markets. Economic Journal 125 (May): 621–646.CrossRefGoogle Scholar
  4. ———. 2016. The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade. Annual Review of Economics 8: 205–240.CrossRefGoogle Scholar
  5. Blackwill, Robert, and Theodore Rappleye. 2017. Trump’s Five Mistaken Reasons for Withdrawing from the Trans-Pacific Partnership. Foreign Policy Magazine, June 22, 2017, which can be accessed at www.foreignpolicy.com
  6. Burfisher, Mary, et al. 2019. NAFTA to USMCA – What Is Gained? IMF Working Paper #WP/19/73 (March 2019).CrossRefGoogle Scholar
  7. Caliendo, Lorenzo, et al. 2018. Trade and Labor Market Dynamics: General Equilibrium Analysis of the China Trade Shock, Working Paper 2015-009E (June 2018) of the Federal Reserve Bank of St. Louis.Google Scholar
  8. Collins, Benjamin. 2014. Trade Adjustment Assistance for Workers, Congressional Research Service Report #42012 (March 5, 2014).Google Scholar
  9. Feenstra, Robert, and Akira Sasahara. 2017. The ‘China Shock’, Exports and US Employment: A Global Input-Output Analysis, NBER Working Paper #24022 (November 2017).Google Scholar
  10. Houseman, Susan. 2018. Understanding the Decline in US Manufacturing Employment, Upjohn Institute for Employment Research Working Paper (January 2018).Google Scholar
  11. Huffbauer, Gary, and Steven Glberman. 2018. The United States-Canada-Mexico Agreement: Overview and Outlook, Fraser Research Bulletin (November 2018).Google Scholar
  12. Huffbauer, Gary, and Zhiyao Lu. 2016. Increased Trade: A Key to Improving Productivity, Policy Brief #16-15, Peterson Institute for International Economics (October 2016).Google Scholar
  13. ———. 2017. The Payoff to America from Globalization: A Fresh Look with a Focus on Costs to Workers, Policy Brief #17-16, Peterson Institute for International Economics (May 2017).Google Scholar
  14. Huffbauer, Gary, et al. 2014. NAFTA at 20: Misleading Charges and Positive Achievements, Peterson Institute for International Economics Policy Brief #14-13 (May 2014).Google Scholar
  15. International Monetary Fund. 2019. The Drivers of Bilateral Trade and Spillovers from Tariffs. Chapter 4 of the World Economic Outlook Report, April 2019.Google Scholar
  16. Kehoe, Timothy, et al. 2018. Global Imbalances and Structural Change in the United States. Journal of Political Economy 126 (2): 761–796.CrossRefGoogle Scholar
  17. Magyari, Ildiko. 2017. Firm Re-organization, Chinese Imports, and US Manufacturing Employment, US Census Bureau Center for Economic Studies Report #17-58 (October 2017).Google Scholar
  18. Martin, John. 2014. Activation and Active Labor Market Policies in OECD Countries: Stylized Facts and Evidence on Their Effectiveness, IZA Policy Paper #84 (June 2014).Google Scholar
  19. Nie, Jun, and Ethan Struby. 2011. Would Active Labor Market Policies Help Combat High US Unemployment? Economic Review of the Federal Reserve Bank of Kansas City (Third Quarter 2011), 35–69.Google Scholar
  20. Peterson Institute for International Economics. 2016. Assessing the Trans Pacific Partnership, PIIE Briefing Reports #1 and #4 (February and March 2016).Google Scholar
  21. Petri, Peter, and Michael Plummer. 2016. The Economic Effects of the TPP: New Estimates. Chapter 1 of Assessing the Trans-Pacific Partnership, Peterson Institute for International Economics Briefing Report #1, February 2016.Google Scholar
  22. Rodrik, Dani. 2018. What Do Trade Agreements Really Do? NBER Working Paper #24344 (February 2018).Google Scholar
  23. Schott, Jeffrey. 2016. Understanding the Trans-Pacific Partnership: An Assessment. Washington, DC: Peterson Institute for International Economics.Google Scholar
  24. Slaughter, Matthew. 2018. How Withdrawing from NAFTA Would Damage the US Economy. A Report Sponsored by the Business Roundtable (January 2018).Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Anthony Elson
    • 1
  1. 1.School of Advanced International StudiesJohns Hopkins UniversityWashington, DCUSA

Personalised recommendations