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Dancing with dragons: Chinese import penetration and the performances of manufacturing firms in South Africa

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  • Sofia Torreggiani
  • Antonio Andreoni

Abstract

Using firm-level tax administrative data from 2010 to 2017, we study the impact of Chinese import penetration on the performances of manufacturing firms in South Africa, and whether firms investing in capabilities development are more resilient to such competitive pressure. Specifically, by instrumenting Chinese import penetration with China's share in other low- and middle-income countries' imports, we first explore whether Chinese import exposure— both direct (e.g. affecting the sector in which the firm itself operates) and indirect (e.g.

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  • Sofia Torreggiani & Antonio Andreoni, 2019. "Dancing with dragons: Chinese import penetration and the performances of manufacturing firms in South Africa," WIDER Working Paper Series wp-2019-63, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2019-63
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    Keywords

    Capabilities; Import competition; Import; Manufacturing;
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