IDEAS home Printed from https://ideas.repec.org/a/taf/jitecd/v32y2023i8p1312-1340.html
   My bibliography  Save this article

The China trade shock and the European Union's employment

Author

Listed:
  • Mi Dai
  • Qingyuan Du
  • Yalin Liu
  • Jianwei Xu

Abstract

This paper analyzes the effect of trade with China on the European Union's industrial and regional employment. Built on a canonical multi-country Ricardian model, we identify and estimate the employment reallocation effect across fifteen EU countries with specific discussions on three channels: import penetration, direct export, and third-market competition vis-à-vis China. Data suggest that the adverse effects stemming from the import penetration and the third-market competition quantitatively dominate the positive effect from the export channel for the effect on the EU. In particular, the third-market competition channel is a key channel for understanding the impact of China trade shock on the EU market, accounting for about 46% and 36% of the total negative effect at the industry level and region level, respectively. Moreover, the third-market competition channel particularly influenced the relative employment growth of the worst-affected industries in the European market.

Suggested Citation

  • Mi Dai & Qingyuan Du & Yalin Liu & Jianwei Xu, 2023. "The China trade shock and the European Union's employment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 32(8), pages 1312-1340, November.
    • Handle: RePEc:taf:jitecd:v:32:y:2023:i:8:p:1312-1340
    DOI: 10.1080/09638199.2023.2260010
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09638199.2023.2260010
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09638199.2023.2260010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:32:y:2023:i:8:p:1312-1340. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJTE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.