Does Technological Progress Promote or Prevent Trade Conflict? Evidence From China
Qian Zhao,
Chi-Wei Su,
Adelina Dumitrescu Peculea
Abstract:Using the bootstrap rolling-window subsample Granger causality test from China, this study analyses the influence of technological progress (TP) on trade conflict (TC). The results show that TP can both promote and prevent TC. In 2012 and 2018, TP led to more trade conflicts between China and its trading partners. This result proves the “trade-loss effect”, suggesting that TP in one country promotes TC by threatening other countries’ income. However, TP had a negative influence on TC in 2021 and 2022. This fin… Show more
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