IDEAS home Printed from https://ideas.repec.org/a/taf/rcejxx/v13y2020i3p376-393.html
   My bibliography  Save this article

Who will win from the trade war? Analysis of the US–China trade war from a micro perspective

Author

Listed:
  • Vani Archana

Abstract

Over the past two years, China and the US are going on a trade war imposing tariffs on one another’s goods and this is hurting each other’s businesses. The focus of the present paper is to analyse the costs and benefits of tariff policy changes by the two economies. A partial equilibrium model approach based on highly disaggregated data shows that when China and the US are moving rapidly towards tariff imposition, it is largely deleterious from both the economy’s perspective in terms of trade and welfare. If we compare both the economies, the losses would be considerably higher for the US than China. However, trade liberalization is clearly associated with improved trade flows in the US and additional welfare gains in China. China would gain particularly in consumer goods, industrial goods and agricultural goods whereas the US would be better off opening its consumer goods and industrial goods.

Suggested Citation

  • Vani Archana, 2020. "Who will win from the trade war? Analysis of the US–China trade war from a micro perspective," China Economic Journal, Taylor & Francis Journals, vol. 13(3), pages 376-393, September.
    • Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:376-393
    DOI: 10.1080/17538963.2020.1785073
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17538963.2020.1785073
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17538963.2020.1785073?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Luo & Siyuan Kang & Sheng Hu & Lixian Su & Rui Dai, 2023. "Dual Effects of the US-China Trade War and COVID-19 on United States Imports: Transfer of China's industrial chain?," Papers 2309.02271, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:376-393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rcej .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.