Does trade with China help the poor?
One focus of the economic debate (if that's what it is) in the battle for the Democrat nomination in the United States seems to be on the impact of trade—read: China—on jobs for the low-income group. But that's only one side of the story. The other side is pretty interesting, too.We examine the role played by Chinese exports in explaining the lower inflation of the poor. Since Chinese exports are concentrated in low-quality non-durable products that are heavily purchased by poorer Americans, we find that about one third of the relative price drops faced by the poor are associated with rising Chinese imports.Broda and Romalis
Posted on 04/27 at 06:57 PM.
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