Analysis on the Reasons for the Balance of Payments Between China and America from the Perspective of “Elastic Pessimism”

DOI

10.2991/aebmr.k.220306.027How to use a DOI?

Keywords

Elastic Pessimism; J-curve theory; Marshall-Lerner Condition; Balance of payments

Abstract

In recent years, the balance of payments of America has maintained a continuous deficit, and on the contrary, China’s surplus of international payments has been expanding. In order to explore the reasons for the formation of the balance of payments between the two countries, this paper analyzes the actual situation in China and America from the perspective of Elastic Pessimism, based on the Marshall-Lerner Condition. The research can be concluded as that the actual trade export volume and trade scale of America with high-tech industrial products have been suppressed, resulting in low demand elasticity for exported goods. At the same time, since most of the goods consumed by Americans in advance are essential goods from China, the depreciation of the dollar relative to the renminbi has not reduced demand, but has increased the trade deficit. For China, its abundant resources and cheap and high-quality products allow it to occupy an active position in the world trade market.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Qi Zhang
PY  - 2022
DA  - 2022/03/17
TI  - Analysis on the Reasons for the Balance of Payments Between China and America from the Perspective of “Elastic Pessimism”
BT  - Proceedings of the 7th International Conference on Economy, Management, Law and Education (EMLE 2021)
PB  - Atlantis Press
SP  - 166
EP  - 171
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220306.027
DO  - 10.2991/aebmr.k.220306.027
ID  - Zhang2022
ER  -