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International Trade and UK De-Industrialisation

Author

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  • Foliano, Francesca
  • Riley, Rebecca

Abstract

The past 25 years have been characterised by a surge in international trade as economies have become increasingly inter-linked. In many advanced economies this surge has been associated with increased import competition from low-wage economies. This paper explores the effects of such competition on manufacturing jobs in the UK. We consider two developments that influenced the nature of international trade: the ascendency of China as an important player in global markets and the accession to the European Union of a number of Eastern European economies in 2004. Both of these changes were associated with a shift in trade regimes and led to a sharp rise in import competition in particular UK manufacturing sectors. We find that these changes are likely to have hastened the decline of UK manufacturing.

Suggested Citation

  • Foliano, Francesca & Riley, Rebecca, 2017. "International Trade and UK De-Industrialisation," National Institute Economic Review, National Institute of Economic and Social Research, vol. 242, pages 3-13, November.
    • Handle: RePEc:cup:nierev:v:242:y:2017:i::p:r3-r13_10
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    Cited by:

    1. Rob Euwals & Harro van Heuvelen & Gerdien Meijerink & Jan Möhlmann & Simon Rabaté, 2021. "Increased trade with China and Eastern Europe hardly affects Dutch workers," CPB Discussion Paper 426, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Rob Euwals & Gerrit Hugo Heuvelen & Gerdien Meijerink & Jan Möhlmann & Simon Rabaté, 2022. "The Impact of Import Competition and Export Opportunities on the Dutch Labour Market," De Economist, Springer, vol. 170(3), pages 343-374, August.
    3. Rebecca Riley & Ana Rincon-Aznar & Lea Samek, 2018. "Below the Aggregate: A Sectoral Account of the UK Productivity Puzzle," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2018-06, Economic Statistics Centre of Excellence (ESCoE).
    4. Chen, Chinchih & Frey, Carl Benedikt & Presidente, Giorgio, 2022. "Automation or globalization? The impacts of robots and Chinese imports on jobs in the United Kingdom," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 528-542.

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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