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The impact of China on manufacturing exports of Italy and Germany

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  • Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi

Abstract

This paper analyses the impact of China on the export performance of Italy and Germany to their main trading partners in the OECD markets. Given a strong specialization in the manufacturing sector, these two countries are exposed to China’s competition. Italy, with a productive structure based on so-called “traditional” sectors, is likely to be more vulnerable to China’s competitive pressure. Using data for the period 1995-2009, this paper estimates the impact of China on Italy and Germany’s market shares at a very disaggregated sector level. Results show that China has affected Italy’s and Germany’s market shares in different ways, especially during the post-WTO accession period, being on average more harmful for the former.

Suggested Citation

  • Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi, 2012. "The impact of China on manufacturing exports of Italy and Germany," RSCAS Working Papers 2012/26, European University Institute.
    • Handle: RePEc:rsc:rsceui:2012/26
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    Cited by:

    1. Huiyao Chen & Changyuan Luo & Mary‐Françoise Renard & Shiyi Sun, 2022. "EU‐China trade and intra‐EU trade: Substitute or complementary?," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 558-585, July.
    2. Huiyao Chen & Changyuan Luo & Mary-Françoise Renard & Shiyi Sun, 2021. "EU-China Trade and intra-EU Trade: Substitute or Complementary?," Working Papers hal-03467473, HAL.
    3. Lewis, John & De Schryder, Selien, 2015. "Export dynamics since the Great Trade Collapse: a cross-country analysis," Bank of England working papers 535, Bank of England.
    4. Cesare Imbriani & Piergiuseppe Morone & Francesco Renna, 2015. "Innovation and Exporting: Does Quality Matter?," The International Trade Journal, Taylor & Francis Journals, vol. 29(4), pages 273-290, October.
    5. Cesare Imbriani & Piergiuseppe Morone & Giuseppina Testa, 2014. "Innovation, quality and exports: The case of Italian SMEs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1089-1111, December.

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    Keywords

    China; Gravity Model; Market Shares; F-10; F-14;
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