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Chinese export competition, declining exports and adjustments at the industry and regional level in Europe

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  • Matthias Flückiger
  • Markus Ludwig

Abstract

We analyze how a set of 22 European countries was affected by increased Chinese export competition between 1995 and 2008. Employing product-group level data, we observe a reduction in the export volumes of European countries due to increased Chinese export competition. This deceleration in the export sector induces changes within the manufacturing industries, especially a decline in employment. When using more aggregated, regional-level data, our analysis shows that the industry sector as a whole declines, resulting in an increased unemployment rate. The importance of Chinese export competition for Europe is attributable to its high export intensity.

Suggested Citation

  • Matthias Flückiger & Markus Ludwig, 2015. "Chinese export competition, declining exports and adjustments at the industry and regional level in Europe," Canadian Journal of Economics, Canadian Economics Association, vol. 48(3), pages 1120-1151, August.
    • Handle: RePEc:cje:issued:v:48:y:2015:i:3:p:1120-1151
    DOI: 10.1111/caje.12170
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    Cited by:

    1. Ciani, Andrea & Mau, Karsten, 2023. "Delivery times in international competition: An empirical investigation," Journal of Development Economics, Elsevier, vol. 161(C).
    2. Katariina Nilsson Hakkala & Yao Pan, 2024. "Export competition with China and firms' coping strategies," Economica, London School of Economics and Political Science, vol. 91(364), pages 1454-1481, October.
    3. Zhe Chen & Yoshinori Kurokawa, 2023. "The Value Added-Exports Puzzle and Global Value Chains," Tsukuba Economics Working Papers 2023-001, Faculty of Humanities and Social Sciences, University of Tsukuba.
    4. Nilsson Hakkala, Katariina & Pan, Yao, 2019. "Emerging Trade Battlefield with China: Export Competition and Firm’s Coping Strategies," ETLA Working Papers 71, The Research Institute of the Finnish Economy.
    5. Sónia Cabral & Pedro S. Martins & João Pereira dos Santos & Mariana Tavares, 2021. "Collateral Damage? Labour Market Effects of Competing with China—at Home and Abroad," Economica, London School of Economics and Political Science, vol. 88(350), pages 570-600, April.
    6. Yao Pan & Katariina Nilsson Hakkala, 2019. "Emerging Trade Battlefield with China: Export Competition and Firms’ Coping Strategies," Working Papers 2019-14, The George Washington University, Institute for International Economic Policy.
    7. Lee Branstetter & Ana Venancio & Brian Kovak, 2019. "The China Shock and Portuguese Manufacturing," 2019 Meeting Papers 1051, Society for Economic Dynamics.
    8. Ciani, Andrea & Mau, Karsten, 2020. "When Time Matters: Eastern Europe's Response to Chinese Competition," Research Memorandum 007, Maastricht University, Graduate School of Business and Economics (GSBE).

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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