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Commerce, jobs and politics: the impact of the USA–China trade on USA domestic politics
James Caporaso 경희대학교 글로벌 통상·금융연구원 2022 International Trade, Politics and Development Vol.6 No.1
The purpose of the paper “Commerce, jobs and politics: the impact of the USA–China trade on USA domestic politics” is to examine the impact of Chinese trade with the USA to determine the consequences of the trade on manufacturing employment. The geographic and sectoral impacts of this trade are assessed. The conclusion is that the USA–China trade has affected political polarization in such a way as to affect electoral outcomes. Implications for policy are discussed in the paper.The overall design is a focused case study in terms of its focus on the USA–China trade relations. There is also a statistical component due to the breakdown of the USA in economic commuting zones.The major finding is that Chinese import penetration created substantial political polarization in the USA and that polarization affected electoral outcomes. Chinese import penetration also resulted in a shift of jobs from the eastern heartland to the coasts. Much of the transition was aided by the restructuring of jobs within firms from manufacturing to high-end services.Perhaps, the biggest limitation concerns how general and durable the findings are. The authors establish that the first decade after Chinese entry into the World Trade Organization (WTO) (2001) was characterized by economic disruption in the USA labor market. Whether the economic effects will have a longer duration is not known.One practical limitation is that it is difficult to know what policy actions to take on the basis of the research: trade policy, human capital (education) policy or place-based policies which aid particular regions.The social implications in this paper are jobs and employment policy.The author thinks this is very original work, though based on the work of several economists. But outside of a few articles, the author does not think much has appeared in political science journals.
Domestic macroeconomic sources of the USA–China trade conflict
James Caporaso 경희대학교 글로벌 통상·금융연구원 2024 International Trade, Politics and Development Vol.8 No.1
Trade relations between China and the USA have been marked by conflict, especially since China’s membership in the World Trade Organization (WTO). These conflicts have been analyzed from a variety of perspectives, including the loss of jobs in the USA due to Chinese imports, competition in high technology sectors and the balance of trade. Conceptual frameworks have employed models of domestic differences as well as models of international power distribution. Among domestic differences examined are the existence of state-owned enterprises in China compared to the domination of the USA economy by private firms, the large role of the Communist Party in China and the influence of labor and environmental and labor groups in the USA. Power distribution theories focus on the systemic effects of the distribution of power on trade openness and on the pattern of intra-bloc versus between-bloc trade. This paper aims to examine the role of macroeconomic policy factors in China and the USA, in particular, the role of national patterns of savings, investment and consumption (both private and government). The paper concludes that insofar as the balance of trade is an important component of the trade conflict, domestic macroeconomic factors continue to be important. The resolution of the conflict will have to take into account the respective macroeconomic policies of China and the USA.