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Chinese import competition, crime, and government transfers in US

Author

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  • Che, Yi
  • Xu, Xun
  • Zhang, Yan

Abstract

This paper exploits the exogenous rise of Chinese imports in US to investigate the effect of import competition on crime at the county level. The results indicate that counties with high exposure to Chinese import competition have high crime rates. The exposure effect on property crime is much larger than that on violent crime. A one standard deviation increase in exposure causes 32 more violent crimes in the county, while such increase in exposure causes 256 more property crimes. Interestingly, we find that the crime impact of exposure to Chinese import competition becomes smaller in counties with high government transfers.

Suggested Citation

  • Che, Yi & Xu, Xun & Zhang, Yan, 2018. "Chinese import competition, crime, and government transfers in US," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 544-567.
    • Handle: RePEc:eee:jcecon:v:46:y:2018:i:2:p:544-567
    DOI: 10.1016/j.jce.2017.10.003
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    6. Akira Sasahara, 2022. "The Empirics of the China Trade Shock: A Summary of Estimation Methods and A Literature Review," Keio-IES Discussion Paper Series 2022-008, Institute for Economics Studies, Keio University.
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    More about this item

    Keywords

    Chinese import competition; US Crime; Government transfers;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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