The United States' Use of Trade as a Post-Financial Crisis Stabilization Tool
The purpose of this paper is to determine whether the United States uses its trade policies as part of broader stabilization efforts for countries of interest during an economic crisis. While much has been written on how the US directly intervenes in these situations (e.g., bailout loans, favorable loans), little has been found on the less directly related (and therefore potentially less contentious) decisions such as a push for greater imports from the suffering country. I employ a fixed effects time series model to track United States' import patterns and control for factors such as diplomatic relations, exchange rates, and formal trade agreements. Although no statistically significant relationship between import levels and financial crisis years exists, trade policy might present a possible solution for the US to support the stabilization of crisis ridden economies that should be further studied and potentially implemented.
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