Kurzy.cz (Czech Republic):
Economic incompetence of the president and his men
6 March 2018
Even customs duties, which will help US companies in the short term, can be detrimental in the long run. This protection of the domestic market can lead to a decline in qualitative competitiveness. In this context, an interesting 2007 study, in which economists Nicholas Bloom, Mirko Draca and John Van Reenen show that competition from Chinese goods pushed for a drop in jobs in the US, but also to increase the productivity and competitiveness of Canadian companies. A much better idea of how to reduce trade deficits would, according to Smith, be an effort to reduce budget deficits, as they tend to push up business.
Related publications
‘Trade Induced Technical Change? The Impact of Chinese Imports on Innovation’, IT and Productivity, Nicholas Bloom, Mirko Draca and John Van Reenen, Review of Economic Studies, 83:1, January 2016