May 24, 2017

Container port, China. Trade with China has helped improve living standards in advanced economies through higher productivity 

Advocates of protectionist policies in advanced economies blame job losses on growing trade with China, and influential researchers have provided some empirical backing for their claims. Yet the benefits of trade with China are often overlooked. Among them is faster growth in productivity—the key driver of improved living standards. This suggests that rather than erecting new barriers to trade, advanced economies should continue to open up—while doing much more to help those who have lost their jobs to overseas competition.

Our new research shows that for advanced economies:

  • Productivity growth has been faster in countries and industries that have been more exposed to China’s opening to trade, all else equal; and
  • As much as 12 percent of the increase in productivity over the 12 years from 1995 through 2007 can be attributed to China’s integration into world trade. Den Rest des Beitrags lesen »