Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278464 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 2304
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
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.
Subjects: 
trade diversion
trade war
JEL: 
F14
F16
R23
Document Type: 
Working Paper

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