Economics, Econometrics and Finance
4 years ago

US-China trade deficit widens due to opposing economic forces and production shifts.

National Bureau of Economic Research
The US-China Bilateral Trade Balance: Its Size and Determinants
Robert C. Feenstra, Wen Hai, Wing Thye Woo, Shunli Yao

Paper Summary

The US and China have a trade deficit of 15−20billionin1994and15-20 billion in 1994 and 15−20billionin1994and16-22 billion in 1995, which is larger than previously thought. This is due to different economic forces in each country and more US imports being made in China.

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