Journal Article

A Theoretical and Empirical Analysis of Benefits Distribution in China-U.S. Trade during 1978-2007

郭其友 王春雷

2012

Overview

The Sino-U.S. trade imbalance and the related debate on RMB appreciation have attracted much attention in recent years. Judging objectively, however, the trade imbalance does not necessarily result in an imbalance in the distribution of trade benefits. By analyzing the distribution of benefits in Sino-U.S. trade from 1978 to 2007, this paper finds that bilateral trade has brought positive benefits to both sides, differentially in terms of production and consumption. Simply put, China has gained benefits for production yet suffered in terms of consumption, whereas the opposite is true for the U.S.. Moreover, even during periods in which the U.S. experienced a trade deficit, its citizens gained larger total individual benefits than those in a period of trade surplus. We argue, therefore, that appreciation of the RMB would reduce the trade benefits for both sides by almost the same margin, bringing little benefit to the United States.

• Publisher: 中国社会科学院工业经济研究所,Institute of Industrial Economics, Chinese Academy of Social Sciences
• Subject: Consumer behavior / Consumers / Consumption / International trade / Manufacturing / Price levels / Production increases / Purchasing power / Trade agreements / Trade deficit / Trade surplus / 不平衡 / 个人利益 / 中国 / 交易 / 人民币 / 利益分配 / 双边贸易 / 实证分析