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gives to the losses to workers in affected industries, this indicates an even larger purely dollar gain from increased trade. By the way, this model has some other interesting results. Which state do you think had the largest initial job losses from increased trade with China? It was California followed by Texas! Why? The computer and electronics, and furniture industries each contributed about 25% of the China shock related decline in manufacturing employment, followed by the metal and textiles industries. California and Texas had large computer and electronics sectors, which were heavily impacted by Chinese imports.These are hardly the first states that come to mind when one thinks of depressed US regions, and indeed both states eventually benefited from China trade as much as other states.

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