Trade Policy and Jobs in Vietnam: The Unintended Consequences of US-China Trade Tensions
Trade Policy and Jobs in Vietnam
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Volume/Issue:
Volume 2024
Issue 263
Publication date: December 2024
ISBN: 9798400296895
$20.00
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Topics covered in this book
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Taxation - General , Exports and Imports , Labor , Vietnam , US-China trade tensions , trade policy , exports , employment , US-China tariff , jobs in Vietnam , export opportunity , tariff hike , US-China trade tension , Tariffs , Trade tensions , Job creation , Global
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Summary
We use the US-China tariffs of 2018-19 as an exogenous shock to export opportunities in Vietnam to identify how trade policy affects job creation. Using a difference-in-differences framework, we first show that US tariffs on China increased the range of products exported by Vietnam to the US in the two years after the hikes. We then show using firm level data that this expansion in export opportunities led to job creation. Around 5% extra jobs were created in firms hit with average tariffs above 15%. Results point towards this effect being driven mostly by female employment.
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