Impacts of tariffs of the US against China on the machinery exports of China and Japan to the US

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I analyzed the panel data of ten-digit level machinery commodities which are exported from China and South Korea to the US from 2002Q1 to 2021Q4 to determine the impacts of economic variables on one country on the export quantity and and the export price of the other country. The demand for and the supply of exports of each country were estimated simultaneously. The estimation results show that the impacts of Chinese variables on Korean exports are bigger than the impacts of Korean variables on Chinese exports. When the Chinese export price decreases by 1% the demand for Korean exports decreases by 0.380%. In contrast, when the Korean export price decreases by 1% the demand for Chinese exports decreases by 0.185%. When the Chinese renminbi depreciates by 1%, the Korean export price decreases by 0.652%. When the Korean won depreciates by 1%, the Chinese export prices decrease by 0.824%.