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The dragon Down Under: the regional labour market impact of growth in Chinese imports to Australia

Author

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  • Michael Coelli
  • James Maccarrone
  • Jeff Borland

Abstract

Manufactured imports from China to Australia grew 11-fold between 1991 and 2006. Local differences in industry structure are used to identify the impact of that growth on local labour market outcomes. This growth is estimated to have reduced local manufacturing employment considerably. Local adjustment occurred through labour mobility between regions plus increased rates of unemployment and non-participation. By contrast, import growth from other Asian countries had little impact on Australian manufacturing employment. This is because Chinese imports tended to be in sectors with slower growth in domestic consumption (absorption) and with high labour intensity.

Suggested Citation

  • Michael Coelli & James Maccarrone & Jeff Borland, 2023. "The dragon Down Under: the regional labour market impact of growth in Chinese imports to Australia," Regional Studies, Taylor & Francis Journals, vol. 57(11), pages 2148-2163, November.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:11:p:2148-2163
    DOI: 10.1080/00343404.2023.2176477
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    Cited by:

    1. David Autor & David Dorn & Gordon Hanson & Maggie R. Jones & Bradley Setzler, 2024. "Places versus People: The Ins and Outs of Labor Market Adjustment to Globalization," Working Papers 24-78, Center for Economic Studies, U.S. Census Bureau.
    2. Jordy Meekes, 2022. "Agglomeration Economies and the Urban Wage Premium in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 25(1), pages 25-54.
    3. Ying Ying Ida Xiao, 2024. "Labour market outcomes of the China shock in Australia," Australian Economic Papers, Wiley Blackwell, vol. 63(S1), pages 135-144, May.
    4. Dorn, David & Levell, Peter, 2024. "Labour market impacts of the China shock: Why the tide of Globalisation did not lift all boats," Labour Economics, Elsevier, vol. 91(C).

    More about this item

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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