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China and the Dutch economy

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  • Wim Suyker
  • Henri de Groot

Abstract

China’s spectacular economic performance over the past few decades has had a positive net impact on the Dutch economy. Imports of cheap Chinese products have lowered Dutch inflation. Increasing Chinese exports to Europe have strengthened the role of the Netherlands as a key European distribution centre. Strongly increasing Chinese exports did not have a noticeable impact on the pace of restructuring in the Netherlands. Nor did this development lead to higher unemployment or did it cause a marked widening of Dutch income differentials. Concerning competition on world markets, Chinese export products are more complements than substitutes for Dutch export products.The Chinese economy is expected to continue its rapid expansion. Over the next five years, Chinese exports are likely to double. Increasing trade with China will continue and is expected to enhance Dutch welfare in the upcoming years and will continue to be associated with modest increases in competition and continued restructuring on some markets.

Suggested Citation

  • Wim Suyker & Henri de Groot, 2006. "China and the Dutch economy," CPB Document 127, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:docmnt:127
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    Cited by:

    1. Wim Suyker, 2007. "The Chinese economy, seen from Japan and the Netherlands," CPB Memorandum 185.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Bert Minne & Dinand Webbink, 2008. "Raising teacher supply: An assessment of three options for increasing wages," CPB Memorandum 194.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Frank A.G. den Butter & Raphie Hayat, 0000. "Trade between China and the Netherlands: a Case Study of Globalization," Tinbergen Institute Discussion Papers 08-016/3, Tinbergen Institute.
    4. Frank A.G. den Butter, 2012. "Managing Transaction Costs in the Era of Globalization," Books, Edward Elgar Publishing, number 14748.
    5. Jan Lemmen, 2006. "Is the renminbi undervalued?," CPB Memorandum 166, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Jianhong Zhang & Haico Ebbers & Arjen van Witteloostuijn, 2013. "Dynamics of the global competitiveness of Chinese industries," Post-Communist Economies, Taylor & Francis Journals, vol. 25(4), pages 492-511, December.
    7. Wim Suyker, 2007. "The Chinese economy, seen from Japan and the Netherlands," CPB Memorandum 185, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Harold Creusen & Arjan Lejour, 2009. "The contribution of trade policy to the openness of the Dutch economy," CPB Document 194, CPB Netherlands Bureau for Economic Policy Analysis.
    9. Stefan Groot & Henri de Groot, 2011. "Wage inequality in the Netherlands: Evidence, trends and explanations," CPB Discussion Paper 186, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Wim Suyker & P. Buitelaar & Henri de Groot, 2007. "India and the Dutch economy; stylised facts and prospects," CPB Document 155, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Harold Creusen & Arjan Lejour, 2009. "The contribution of trade policy to the openness of the Dutch economy," CPB Document 194.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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