Year: 2023
Type: article
Abstract: This article employs structural vector autoregression and local projection methods to examine the impacts of the deterioration in the US–China political relations on bilateral trade between Australia and China. Three scenarios are considered to reflect the evolution of US geopolitical strategies in recent years such as “America First”, “China Threat Theory” and “The Protection of US Allies”. The simulation results illustrate that worsening the US–China political relations has a negative impact on Australian exports to and imports from China. It is also found that economic conditions in the US play a more important role in the transmission of this impact than those in China and Australia. In addition, various options are explored to check the robustness of the findings in this article.
DOI: 10.1111/sjpe.12367
Authors: Yifei Cai, Jamel Saadaoui, Yanrui Wu
Language: English
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $2,630
OpenAlex ID: W4388296874