Trade diversion and labor market adjustment: Vietnam and the U.S.-China trade war
Citation:
Karin Mayr-Dorn Gaia Narciso Duc Anh Dang Hien Phan, Trade diversion and labor market adjustment: Vietnam and the U.S.-China trade war, 2023Abstract:
This paper investigates the effects of the U.S.-China trade war on trade diversion and the
labor market in a third country, Vietnam. We exploit variation in Vietnamese exports to the U.S.
across industries and districts based on the extent of the U.S. tariff hikes on Chinese imports and
provide evidence of a positive effect on labor market outcomes in Vietnam. Vietnamese workers
and districts that are more exposed to the trade war display higher employment, working hours,
and wages as a result. Our findings reveal that bilateral trade policy can have substantial
offsetting effects on trade flows and labor markets in third countries.
Sponsor
Grant Number
Irish Aid
Author's Homepage:
http://people.tcd.ie/narcisogDescription:
PUBLISHED
Author: Narciso, Gaia
Type of material:
Working PaperCollections
Availability:
Full text availableKeywords:
Trade diversion, Trade war, VietnamMetadata
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