Does technological progress promote or prevent trade conflict? Evidence from China
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 t...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2024-03-01
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| Series: | Technological and Economic Development of Economy |
| Subjects: | |
| Online Access: | https://jest.vgtu.lt/index.php/TEDE/article/view/18691 |
| _version_ | 1827311267765813248 |
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| author | Qian Zhao Chi-Wei Su Adelina Dumitrescu Peculea |
| author_facet | Qian Zhao Chi-Wei Su Adelina Dumitrescu Peculea |
| author_sort | Qian Zhao |
| collection | DOAJ |
| description |
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 finding is consistent with the “welfare effect”, implying that TP can prevent TC by providing more high-quality and cheaper products for worldwide consumers. This study suggests that the government should adopt appropriate trade policies when encouraging TP to promote bilateral trade. Furthermore, firms should develop their own high-quality irreplaceable products through technological innovation to address TC risk.
First published online 22 March 2024
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| first_indexed | 2024-04-24T20:15:59Z |
| format | Article |
| id | doaj.art-181995dfdd8c4d19a3b84a60d392188e |
| institution | Directory Open Access Journal |
| issn | 2029-4913 2029-4921 |
| language | English |
| last_indexed | 2024-04-24T20:15:59Z |
| publishDate | 2024-03-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj.art-181995dfdd8c4d19a3b84a60d392188e2024-03-22T16:24:47ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212024-03-0110.3846/tede.2024.18691Does technological progress promote or prevent trade conflict? Evidence from ChinaQian Zhao0Chi-Wei Su1Adelina Dumitrescu Peculea2School of International Trade and Economics, Central University of Finance and Economics, Beijing, ChinaSchool of Economics, Qingdao University, 266100 Qingdao, Shandong, ChinaDepartment of Economics and Public Policies, National University of Political Studies and Public Administration, Bucharest, Romania 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 finding is consistent with the “welfare effect”, implying that TP can prevent TC by providing more high-quality and cheaper products for worldwide consumers. This study suggests that the government should adopt appropriate trade policies when encouraging TP to promote bilateral trade. Furthermore, firms should develop their own high-quality irreplaceable products through technological innovation to address TC risk. First published online 22 March 2024 https://jest.vgtu.lt/index.php/TEDE/article/view/18691technological progresstrade conflictrolling-windowbootstrap |
| spellingShingle | Qian Zhao Chi-Wei Su Adelina Dumitrescu Peculea Does technological progress promote or prevent trade conflict? Evidence from China Technological and Economic Development of Economy technological progress trade conflict rolling-window bootstrap |
| title | Does technological progress promote or prevent trade conflict? Evidence from China |
| title_full | Does technological progress promote or prevent trade conflict? Evidence from China |
| title_fullStr | Does technological progress promote or prevent trade conflict? Evidence from China |
| title_full_unstemmed | Does technological progress promote or prevent trade conflict? Evidence from China |
| title_short | Does technological progress promote or prevent trade conflict? Evidence from China |
| title_sort | does technological progress promote or prevent trade conflict evidence from china |
| topic | technological progress trade conflict rolling-window bootstrap |
| url | https://jest.vgtu.lt/index.php/TEDE/article/view/18691 |
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