China Bashing: Does Trade Drive the 'Bad' News About China in the U.S.?

21 Pages Posted: 24 Mar 2009

See all articles by Carlos D. Ramirez

Carlos D. Ramirez

George Mason University - Department of Economics

Rong Rong

George Mason University - Interdisciplinary Center for Economic Science

Date Written: March 22, 2009

Abstract

We develop a monthly index of "bad" news about China reported in the United States from January 1990 to December 2008. "Bad" is defined as news touching on the following issues: human rights, Tibet, child labor, democracy, and repression. Using this bad news index, we document a peculiar finding: three to four months after a trade deficit shock to the U.S.-China bilateral trade balance, the frequency of bad news published about China by U.S. media outlets rises sharply, then dies off slowly. Statistical analysis reveals that the likelihood that this finding is just a coincidence is relatively small - about 1 to 5 percent. This result suggests that "China bashing" may be endogenous to fluctuations in the U.S.-China bilateral trade balance.

Keywords: U.S.-China Trade, U.S. media, China bashing, human rights, transfer function model

JEL Classification: F13, L82, C22

Suggested Citation

Ramirez, Carlos D. and Rong, Rong, China Bashing: Does Trade Drive the 'Bad' News About China in the U.S.? (March 22, 2009). Available at SSRN: https://ssrn.com/abstract=1366884 or http://dx.doi.org/10.2139/ssrn.1366884

Carlos D. Ramirez (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
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703-993-1130 (Phone)
703-993-1133 (Fax)

Rong Rong

George Mason University - Interdisciplinary Center for Economic Science ( email )

4400 University Drive
Fairfax, VA 22030
United States

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