Accommodating Emerging Giants in the Global Economy / Zhuokai Huang, Benny Kleinman, Ernest Liu, Stephen J. Redding.

Format:

Book

Author/Creator:

Huang, Zhuokai.

Contributor:

Kleinman, Benny.

Liu, Ernest.

Redding, Stephen J.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w34530.

NBER working paper series no. w34530

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2025.

Summary:

How has aggregate income and welfare in the United States been affected by globalization and rapid productivity growth in emerging economies? We use the class of constant elasticity trade models to provide quantitative evidence on these questions. We find that reductions in worldwide trade frictions over the period from 1960-2020 reduced the share of the United States in global GDP but raised its aggregate welfare. Similarly, productivity growth in Japan and China led to a decline in the relative income of the United States, but brought aggregate welfare gains from the resulting expansion in global production possibilities. Trade integration and foreign productivity growth have relatively modest effects on domestic income and welfare compared to domestic productivity growth.

Notes:

December 2025.

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