Trade diversion and labor market adjustment: Vietnam and the U.S.-China trade war

Arbeitspapier

This paper investigates the effects of the U.S.-China trade war on trade diversion and the labor market in a third country, Vietnam. We exploit variation in Vietnamese exports to the U.S. across industries and districts based on the extent of the U.S. tariff hikes on Chinese imports and provide evidence of a positive effect on labor market outcomes in Vietnam. Vietnamese workers and districts that are more exposed to the trade war display higher employment, working hours, and wages as a result. Our findings reveal that bilateral trade policy can have substantial offsetting effects on trade flows and labor markets in third countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2304

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Trade ; Trade and Labor Market Interactions ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: trade diversion ; trade war

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mayr, Karin ; Narciso, Gaia ; Dang Duc Anh ; Hien Phan
• Event: Veröffentlichung
• (who): Johannes Kepler University of Linz, Department of Economics
• (where): Linz
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/278464
• Last update: 10.03.2025, 11:43 AM CET