Can Trade Closedness Generate Production Desgrowth? The Case of U.S.-China Trade War

Abstract

This paper is interested to show an alternative method to evaluate the impact of trade and non-trade barriers on the final production of any country. Hence, this paper presents a new method is entitled “The Trade Disputes Sensibility Analysis (TDS-Analysis).” The main idea to build the TDS-Analysis is to propose a serial of new indicators to evaluate trade disputes such as the trade closedness index (Ĉ-Index) and the production desgrowth Function (Ð-Function). To implement the TDS-Analysis requests to measure firstly the Ĉ-Index. Secondly the calculation of the Ð-Function based on measure four sub-Ð-Functions (for the agriculture sector, industrial sector, manufacturing sector, and service sector). The measure of the four sub-Ð-Functions can facilitate the final specialization, production restructuration, and policies for each country in the same trade conflict. Finally, this paper applies the TDS-Analysis in the case of U.S. and China trade dispute respectively.