Chinese Import Competition, Crime, and Government Transfers in US

86 Pages Posted: 22 Dec 2016

See all articles by Yi Che

Yi Che

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Xun Xu

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Yan Zhang

Shanghai University of Finance and Economics - School of Economics

Date Written: July 26, 2016

Abstract

This paper exploits the exogenous rise of Chinese imports in US to investigate the effect of import competition on crime at the county level. The results indicate that counties with high exposure to Chinese import competition have high crime rates. The exposure effect on property crime is much larger than that on violent crime. A one standard deviation increase in exposure causes 32 more violent crimes in the county, while such increase in exposure causes 256 more property crimes. Interestingly, we find that the crime impact of exposure to Chinese import competition disappears in counties with high government transfers.

Keywords: Chinese Import Competition; US Crime; Government Transfers

JEL Classification: F14; F16; K42; D31

Suggested Citation

Che, Yi and Xu, Xun and Zhang, Yan, Chinese Import Competition, Crime, and Government Transfers in US (July 26, 2016). Available at SSRN: https://ssrn.com/abstract=2888357 or http://dx.doi.org/10.2139/ssrn.2888357

Yi Che

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

Huashan Road 1954
Shanghai Jiao Tong University
Shanghai, Shanghai 200030
China

Xun Xu

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

No.1954 Huashan Rd
Shanghai Jiao Tong University
Shanghai, Shanghai 200030
China

Yan Zhang (Contact Author)

Shanghai University of Finance and Economics - School of Economics ( email )

777 Guoding Road
Shanghai, 200433
China

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