Re-Examining the Effects of Trading with China on Local Labor Markets: A Supply Chain Perspective

@article{Wang2018ReExaminingTE,
  title={Re-Examining the Effects of Trading with China on Local Labor Markets: A Supply Chain Perspective},
  author={Zhi Wang and Shang-jin Wei and Xinding Yu and Kunfu Zhu},
  journal={NBER Working Paper Series},
  year={2018}
}
  • Zhi Wang, S. Wei, K. Zhu
  • Published 1 August 2018
  • Economics, Business
  • NBER Working Paper Series
The United States imports intermediate inputs from China, helping downstream US firms to expand employment. Using a cross-regional reduced-form specification but differing from the existing literature, this paper (a) incorporates a supply chain perspective, (b) uses intermediate input imports rather than total imports in computing the downstream exposure, and (c) uses exporter-specific information to allocate imported inputs across US sectors. We find robust evidence that the total impact of… 
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TLDR
The conclusions are that producer service imports have a significant positive impact on the domestic value-added of manufacturing exports through direct effects, upstream effects and downstream effects, and the downstream effect is the main driving force for the improvement of manufacturing.
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