Are US imports really hurting US households?: an analysis of the relationship between US households’ consumption and US imports

Author: Florence Bouvet, Ph.D. and Chong-Uk Kim, Ph.D.

Publication: Global Business and Economics Review

Publication Date: March 31, 2014

Abstract:
This paper seeks evidence of the relationship between US households’ consumption and imports, notably imports from China. Using MSA-level data from the consumer expenditure survey from 1986 to 2007, we find that in general imports, and especially those from China, are positively related with households’ consumption. A one-percentage point increase in the size of imports relative to GDP increases consumption (total and non-durable goods consumption) by 2%. This positive relationship is stronger for imports from China.