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Title: Combating Inequality: Rethinking Government's Role -
Citation Type: Book, Section
Publication Year: 2021
ISBN: 9780262045612
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Abstract: China’s meteoric rise as a world manufacturing power commenced in the early 1990s and was heralded and amplified by its elevation to Permanent Normal Trading Status with the United States and accession to the World Trade Organization at the start of the new millennium. A rapidly growing body of literature finds that China’s subsequent export surge, which drove the US merchandise trade deficit from 2.7% to 5.7% of GDP between 1998 and 2007, left large and enduring scars on aggregate US manufacturing employment, on workers initially employed in manufacturing establishments competing with China, and on local labor markets specializing in labor-intensive manufacturing, in which China gained comparative advantage (Bernard, Jensen, and Schott 2006; Autor, Dorn, and Hanson 2013; Autor et al. 2014; Ebenstein et al. 2014; Acemoglu et al. 2016; Autor, Dorn, and Hanson 2016; Caliendo, Dvorkin, and Parro 2019). The scale and duration of these impacts, known collectively as the “China shock,” took economists and policymakers by surprise and initially faced some skepticism from trade scholars. One does not have to be a trade theorist or an industrial engineer, however, to notice that the precipitous fall in US manufacturing that began in the late 1990s and continued for almost fifteen years was without parallel in the post-Depression era and that it had no plausible technological origin.
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Authors: Autor, David
Editors: Blanchard, Olivier; Rodrik, Dani
Pages: 121-129
Volume Title: Why Was the "China Shock" So Shocking--and What Does This Mean for Policy?
Publisher: MIT Press
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Data Collections: IPUMS USA
Topics: Other
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