This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at impacts of initial trade with China. Mike, few states have undergone the kind of economic transformation like North Carolina. Our state has developed new industries like technology and financial services, but has seen downsizing in traditional sectors such as textiles and furniture. Has international trade been behind some of these changes?
Mike: Summary Answer
- Indeed it has, and a new study confirms this
- NAFTA was the first change
- But the entry of China to the world trading system in 2000 was another, and with more impact
- China’s path to economic development was in manufacturing consumer goods
- For NC, China quickly became a competitor for textiles, apparel, and furniture
- The new study documents this, and shows that from 2000 to 2007, China displaced much production in these areas – of course – very important to NC
- Obviously had an adverse impact on NC’s production in these industries, especially in rural NC
- But study shows the negative impact was completed by 2008
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.