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https://doi.org/10.1080/1331677X.2019.1694559

Does political conflict affect bilateral trade or vice versa? Evidence from Sino-U.S. relations

Chi-Wei Su
Yu Song
Ran Tao
Lin-Na Hao


Puni tekst: engleski pdf 2.520 Kb

str. 3238-3257

preuzimanja: 1.381

citiraj


Sažetak

This paper investigates the dynamic causal relationship between
Sino-U.S. political conflict and bilateral trade using a time-varying
(bootstrap) Granger full-sample causality test and sub-sample rolling
window estimation. The result indicates that Sino-U.S. political conflict
and bilateral trade may interact in various ways. Bilateral trade
has both positive and negative effects on political conflict in several
sub-phases, and in turn, political conflict has the same impacts on
bilateral trade. In general, the relationship between Sino-U.S. political
conflict and bilateral trade is not always consistent with the
model of Polachek, which states bilateral trade has significantly
reduced political conflict. In the face of a severe economic situation,
China and the U.S. government should strengthen trade cooperation
and seek common ground of economic interests in order to
expand the improvement of political relations.

Ključne riječi

Political conflict; bilateral trade; bootstrap rolling windows; Sino-U.S. relations

Hrčak ID:

254707

URI

https://hrcak.srce.hr/254707

Datum izdavanja:

9.2.2021.

Posjeta: 1.803 *