Home | News |

The Financial Times cites work by Professor Rob Feenstra and UCD Econ Alumni Hong Ma and Yuan Xu

The Financial Times covered a session in the 2019 American Economics Association winter meetings on U.S. trade with China, citing a paper in the session written by UCD Economics Professor Robert Feenstra, coauthored with two UCD Economics alumni, Hong Ma and Yuan Xu, now faculty at Tsinghua University. The paper describes how measurement of job displacement from the "China Shock"-- a surge in imports from China in advanced economies 1990-2007/2011-- was magnified by large fluctuations in employment in the construction sector that also occurred during that period.

The FT writes, "Worse still, the impact of a `China shock' is magnified across the economy by house prices, as the economists Robert Feenstra, Hong Ma and Yuan Xu told the AEA."

Also in the session was new work by a team including another UC Davis alumnus, Phil Luck, now on the faculty at Drexel University, showing how some firms were able to respond to the increased import competition by expanding into new industries, especially in areas with high-skilled workers.