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Did China tire safeguard save U.S. workers?

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  • Chung, Sunghoon
  • Lee, Joonhyung
  • Osang, Thomas

Abstract

Although temporary trade barriers are perceived as a feasible policy instrument for securing domestic jobs in the presence of increased globalization and economic downturns, no study has assessed whether such temporary barriers have actually saved domestic jobs. To overcome this deficiency, we evaluate the China-specific safeguard case on consumer tires petitioned by the United States. Contrary to claims made by the Obama administration, we find that total employment and average wages in the tire industry were unaffected by the safeguard. Further analysis reveals that this result is not surprising as we find that imports from China are completely diverted to other exporting countries partly due to the strong presence of multinational corporations in the world tire market.

Suggested Citation

  • Chung, Sunghoon & Lee, Joonhyung & Osang, Thomas, 2016. "Did China tire safeguard save U.S. workers?," European Economic Review, Elsevier, vol. 85(C), pages 22-38.
    • Handle: RePEc:eee:eecrev:v:85:y:2016:i:c:p:22-38
    DOI: 10.1016/j.euroecorev.2015.12.009
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    Cited by:

    1. Takechi, Kazutaka, 2020. "Do domestic producers benefit from safeguards? The case of a Japanese safeguard on Chinese vegetable imports in 2001," Japan and the World Economy, Elsevier, vol. 55(C).
    2. Alcover, M. & Crowley, M. A., 2019. "China -- Broiler Products: Can the sum of the parts be less than the whole?," Cambridge Working Papers in Economics 1985, Faculty of Economics, University of Cambridge.
    3. Sébastien Jean & Ariell Reshef, 2017. "Why Trade, and What Would Be the Consequences of Protectionism?," CEPII Policy Brief 2017-18, CEPII research center.
    4. TAKECHI Kazutaka, 2019. "Do Domestic Producers Benefit from Safeguards? The Case of a Japanese Safeguard on Chinese Vegetable Imports in 2001," Discussion papers 19057, Research Institute of Economy, Trade and Industry (RIETI).
    5. Samuel Verevis & Murat Üngör, 2021. "What has New Zealand gained from The FTA with China?: Two counterfactual analyses†," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(1), pages 20-50, February.
    6. Ganserer, Angelika & Gregory, Terry & Zierahn, Ulrich, 2022. "Minimum wages and the rise in solo self-employment," ZEW Discussion Papers 22-024, ZEW - Leibniz Centre for European Economic Research.
    7. Hu, Arthur & Hu, Xingwei & Tong, Hui, 2022. "Globalization? Trade war? A counterbalance perspective," MPRA Paper 114871, University Library of Munich, Germany.
    8. Bo Xiong, 2017. "The implications of US punitive tariffs on Chinese tires for rubber exports from South-East Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 575-586, October.
    9. Ahn,Jaebin & Choi,Jaerim & Chung,Sunghoon, 2022. "Labor Market Rigidity at Home and Multinational Corporations’ Flexible Task Reallocation Abroad," Policy Research Working Paper Series 10114, The World Bank.

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    More about this item

    Keywords

    China tire safeguard; Temporary trade barriers; Trade diversion; Interactive fixed effects;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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