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Joint work by Russ, Swenson featured in The Economist/PIIE "Trade Talks"

Joint research by UCD Economics Professor Kadee Russ and Professor and Chair Deborah Swenson became the focus of a "Trade Talks" podcast produced by Soumaya Keynes of The Economist magazine and Chad Bown of the Peterson Institute for International Economics.

The Korea-U.S. Free Trade Agreement (KORUS) received strong criticism as the U.S. bilateral trade deficit with South Korea increased following its implementation in 2012. Russ and Swenson's research shows that the tariff changes under KORUS likely had no effect on the overall U.S. trade deficit, as they simply diverted U.S. purchases away from other countries, especially China, toward South Korean suppliers. The case study provides empirical support for arguments that macroeconomic factors, rather than alterations in tariff schedules, drive the aggregate U.S. trade deficit.

See additional coverage of the episode by MacroHive financial research.