US Trade Policies Ineffective in Reducing Imbalances with Major Partners
The study looked at the relationship between US exports and imports with its major trading partners using a new test. They found that when exports are the focus, there is a long-term connection, but not when imports are. This means the results change depending on which variable is studied. The US doesn't have a long-term relationship between exports and imports, which supports previous research. This suggests that US trade policies aimed at reducing imbalances may not be effective.