Back to Search Start Over

Oil prices and the U.S. trade deficit

Authors :
Bollino, Carlo Andrea
Source :
Journal of Policy Modeling. Sep/Oct2007, Vol. 29 Issue 5, p729-738. 10p.
Publication Year :
2007

Abstract

Abstract: In the new millennium two developments have dominated the international economic situation: the persistence of high oil price and, consequently, the worsening of the U.S. trade deficit. In this paper I argue that it is possible to set forth an alternative explanation of U.S. trade deficit mainly considering a possible microeconomics missing link, taking in account the “twin nature” of the U.S. trade deficit and conjecturing that U.S. trade deficit can be explained as the result of a convergence of the Chinese and U.S. long run interest, in order to obtain a less energy intensive long run growth. So, I set forth the idea that the U.S., as the future exporter of the New Clean Technology, is a very attractive feature for China and this is a possible answer to the question: “Why should China continue to accumulate dollar reserves?” [Copyright &y& Elsevier]

Details

Language :
English
ISSN :
01618938
Volume :
29
Issue :
5
Database :
Academic Search Index
Journal :
Journal of Policy Modeling
Publication Type :
Academic Journal
Accession number :
26835560
Full Text :
https://doi.org/10.1016/j.jpolmod.2007.06.009