I want to assess the effects of US unemployment on the ratio of US consumer demand for Chinese manufactured products to US consumer demand for US products. The idea is that decreased manufacturing employment in the US (partly caused by imports from China which are caused by the supply shock in China (Autor, Dorn en Hanson, 2013)), results in lower household income, which in turn increases demand for cheap Chinese products (relative to the demand for US products). I want to use the approach of Autor et al. in the sense of using the same commuting zones in the US. So, it will be a panel data study. I have two problems:
-I need variation in Chinese imports for each commuting zone. Is there data available on this?
-How to solve the endogeneity problem caused by reverse causality? I will need a good instrument.
Thank you in advance for any remarks/answers. I also appreciate it if someone knows related literature, since I haven't found anything empirical on this relation yet.
You can try FAO website data.
To solve endogeinity, one you can use seemingly unrelated regression estimation method (SURE).
Dear Ttia Burg,
Try United Nation Comtrade Database https://comtrade.un.org/
Best wishes
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