IDEAS home Printed from https://ideas.repec.org/a/spr/weltar/v159y2023i4d10.1007_s10290-022-00490-1.html
   My bibliography  Save this article

The global impact of the US–China trade war: firm-level evidence

Author

Listed:
  • Felipe Benguria

    (University of Kentucky)

Abstract

This paper documents the impact of the US–China trade war on firms worldwide. Based on data on more than five thousand listed firms in 40 countries, I establish that firms with export exposure to China have had a decline in revenue, profits and capital stocks since the trade war began. This effect is stronger in industries in which China raised tariffs on the US, suggesting that rest of the world exports to China are complements to US exports. At the same time, firms have benefited from export exposure to the US, especially in industries in which the US imposed trade war tariffs on China, implying that rest of the world exports substitute Chinese exports to the US. Supply chain linkages have also played a role: firms in Europe and the Americas in industries selling intermediate inputs to the US have had a relative decline in revenue during the trade war. These impacts have been highly heterogeneous across geographic regions as well as across firms of different sizes.

Suggested Citation

  • Felipe Benguria, 2023. "The global impact of the US–China trade war: firm-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(4), pages 827-851, November.
    • Handle: RePEc:spr:weltar:v:159:y:2023:i:4:d:10.1007_s10290-022-00490-1
    DOI: 10.1007/s10290-022-00490-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10290-022-00490-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10290-022-00490-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    US–China trade war; Trade policy; Firm-level data;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:weltar:v:159:y:2023:i:4:d:10.1007_s10290-022-00490-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.