Abstract
Trade has a huge influence on the economic growth of a country, due to globalization no country could fulfil their national needs and desire without international trade. The aims of this study are to measuring and analyzing the consequences of the United States and China trade war on the United States and China economic growth and global economic growth. To achieve this objective, the study employed Autoregressive Distributed Lag (ARDL) model depending on monthly data from 2016 M1 to 2019 M12. The data were obtained from Federal Reserve Economic Database (FRED) and The United States Census Bureau (USCB), Economic indicators. The result of the study shows that: Dummy variable (D) indicates the tariff rate has a positive and statistically significant effect on United States GDP. However, the effect of tariff rate (D) on the Chines GDP is negative and statistically significant. Likewise, tariff rate(D) harms global GDP, thus if tariff rate (D) changes by 1%, the global GDP decreases by (0.005). In conclusion, increasing tariff rates from both countries (the U.S and China) has negative consequences on their economic growth and the global GDP.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
