Economics, Econometrics and Finance
4 years ago

Widening U.S.-China Trade Deficit Reflects Opposing Economic Forces and Production Shifts

RePEc: Research Papers in Economics
THE U.S.-CHINA BILATERAL TRADE BALANCE: Its Size and Determinants
Robert C. Feenstra, Wen Hai

Paper Summary

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The U.S. and China trade deficit was found to be between 15−20billionin1994and15-20 billion in 1994 and 15−20billionin1994and16-22 billion in 1995, higher than official estimates. The deficit grew due to different economic conditions in both countries and the shift of U.S. imports production to China.