Abstract
The trade conflict has imposed severe hits on China’s and American financial markets, which is reflected by the yield of five indexes. This paper assesses the impact of tariffs on five indexes, which include SSEC, SZSE, NASDAQ, DJI and S&P 500. Then, the paper builds a VAR model and an ARMA-GARCH model to investigate the variations in the volatility of yield. This article illustrates that the tariffs injure financial markets, but the American market suffers less. As the time of tariffs increases, the influence of tariffs has been reduced, approximately to zero. The tariffs lead to damage in other aspects: unemployment, a decline in some industries dependent on exports and a tense international situation. The influence has spread to other nations, especially small open economies. The policy-makers of both countries should realize the negative influence of tariffs on the global economy, and seek other ways to encourage the development of the economy.
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Zhao, L. (2023). Are There Any Winners on Both Sides of the Trade Conflict: Evidence from China and U.S.. In: Dang, C.T., Cifuentes-Faura, J., Li, X. (eds) Proceedings of the 2nd International Conference on Business and Policy Studies. CONF-BPS 2023. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-99-6441-3_54
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DOI: https://doi.org/10.1007/978-981-99-6441-3_54
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