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Trade Protectionism and US Manufacturing Employment

Author

Listed:
  • Li, Chunding

    (China Agricultural University, Beijing)

  • Wang, Jing

    (Western University (UWO))

  • Whalley, John

    (Western University (UWO))

Abstract

This paper uses a numerical global general equilibrium model to simulate the possible effects of US initiated trade protection measures on US manufacturing employment. The simulation results show that US trade protection measures do not increase but will instead reduce manufacturing employment, and US losses will further increase if trade partners take retaliatory measures. The mechanism is that although the substitution effects between domestic and foreign goods have positive impacts, the substitution effects between manufacturing and service sectors and the retaliatory effects both have negative influences, therefore the whole effect is that the US will lose manufacturing employment.

Suggested Citation

  • Li, Chunding & Wang, Jing & Whalley, John, 2019. "Trade Protectionism and US Manufacturing Employment," CAGE Online Working Paper Series 410, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:410
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    Cited by:

    1. Zhuo Chen & Bo Yan, 2022. "The impact of trade policy on soybean futures in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1152-1163, June.
    2. Edward Price, 2020. "Jurisdictional Competition in the International Financial System," Global Policy, London School of Economics and Political Science, vol. 11(3), pages 400-402, May.
    3. Christian Dustmann, 2021. "Trade, Labor Markets, and the China Shock: What Can Be Learned from the German Experience?," CReAM Discussion Paper Series 2112, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    4. Oshodi, Ayodele Folorunso & Kilishi, Abdulhakeem Abdullahi & Muhammed, Ismail Aremu, 2021. "The Nexus between Trade Policy and Manufacturing Employment in Nigeria: A Panel Cointegrating Regression," African Journal of Economic Review, African Journal of Economic Review, vol. 10(1), December.
    5. Munisamy Gopinath, 2021. "Does Trade Policy Uncertainty Affect Agriculture?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 604-618, June.
    6. Jayamaha, D.K.J.S. & Lidula, N.W.A. & Rajapakse, A.D., 2020. "Protection and grounding methods in DC microgrids: Comprehensive review and analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    7. Shouxin Bai & Shicheng Zhou & Yuyao Sheng & Xingwei Wang, 2022. "Does Lockdown Reduce Employment in Major Developing Countries? An Assessment Based on Multiregional Input–Output Model and Scenario Analysis," Sustainability, MDPI, vol. 14(12), pages 1-19, June.

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    More about this item

    Keywords

    Trade Protectionism; Manufacturing Employment; United States; Numerical Simulation JEL Classification: F16; C68; F62;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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