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Intra-Industry Specialization in United States–China Trade

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Frictions in U.S.–China bilateral trade relations have intensified in recent years. Changes in intra-industry specialization indicators are used to assess factor adjustment pressures that may have been experienced by U.S. and Chinese industries from recent growth in bilateral trade. Many industries experienced large increases in intra-industry trade over the 2000–10 period. Only 14 of 62 U.S. industries may have experienced factor adjustment pressures. Most U.S. industries gained from growth in U.S.–China trade. Nine Chinese industries may have faced factor adjustment pressures. The United States should refrain from using trade remedy measures to address bilateral trade frictions and focus instead on improving trade relations.
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Keywords: U.S.–China trade frictions; factor adjustment pressures; free trade agreements; intra-industry specialization

Document Type: Research Article

Affiliations: Department of Economics, University of Tennessee, Knoxville, Tennessee, USA

Publication date: July 1, 2013

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