How Trade with China Boosts Productivity
By JaeBin Ahn and Romain Duval
May 24, 2017
Versions عربي (Arabic), 中文 (Chinese), Français (French), 本語 (Japanese), Русский (Russian), and Español (Spanish)
Container port, Qingdao city, China. Trade with China has helped improve living standards in advanced economies through higher productivity (photo: Imagine China/Newscom)
Advocates of protectionist policies in advanced economies blame job losses on growing trade with China, and influential researchers have provided some empirical backing for their claims. Yet the benefits of trade with China are often overlooked. Among them is faster growth in productivity—the key driver of improved living standards. This suggests that rather than erecting new barriers to trade, advanced economies should continue to open up—while doing much more to help those who have lost their jobs to overseas competition. […]