We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Did China Tire Safeguard Save U.S. Workers?

Did China Tire Safeguard Save U.S. Workers?
Date:
30 March 2015
Authors:
Sunghoon Chung, Joonhyung Lee, Thomas Osang
Tags:

Print Article:

Abstract


It has been well documented that trade adjustment costs to workers due to globalization are significant and that temporary trade barriers have been progressively used in many countries, especially during periods with high unemployment rates. Consequently, temporary trade barriers are perceived as a feasible policy instrument for securing domestic jobs in the presence of increased globalization and economic downturns. However, no study has assessed whether such temporary barriers have actually saved domestic jobs. To overcome this deficiency, we evaluate the China-specific safeguard case on consumer tires petitioned by the United States. Contrary to claims made by the Obama administration, we find that total employment and average wages in the tire industry were unaffected by the safeguard using the 'synthetic control' approach proposed by Abadie et al. (2010). Further analysis reveals that this result is not surprising as we find that imports from China are completely diverted to other exporting countries partly due to the strong presence of multinational corporations in the world tire market.

ERIA-DP-2015-26

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

14 June 2024
Editor(s)/Author(s):
ERIA’s Annual Report 2023 highlights the organisation’s wide range of activities,[...]
5 June 2024
Editor(s)/Author(s):
ERIA publishes a diverse range of materials including books, research reports, discussion[...]