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The Dynamics of Structural Change - The European Union's Trade with China

Author

Listed:
  • Bianka Dettmer
  • Fredrik Erixon
  • Andreas Freytag

    (Friedrich-Schiller-University Jena, School of Economics and Business Administration)

  • Pierre Olivier Legault Tremblay

Abstract

Sino-European trade relations have affected Europe's bilateral comparative advantages over time. The change in bilateral trade is compared to the overall development of European trade to highlight the features of China's structural change. China is shown to be increasingly specializing in technology-intensive goods. The changes in the European Union's trade with China are stronger than the changes in its overall trade pattern. Based on technologically intensive production, focus is placed on China's integration into the worldwide value-added chain since intra-industry trade has become more prevalent in bilateral trade relations with China. Consideration of research-intensive Schumpeter goods finds that trade expansion between 1999 and 2008 was, to a great extent, of the intra-industry type. This has important implications for labor market adjustment costs in different industries.

Suggested Citation

  • Bianka Dettmer & Fredrik Erixon & Andreas Freytag & Pierre Olivier Legault Tremblay, 2009. "The Dynamics of Structural Change - The European Union's Trade with China," Jena Economics Research Papers 2009-053, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2009-053
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    Cited by:

    1. Biswajit Banerjee & Haiyan Shi & Jan Radovan & Yingying Sheng & Xin Li, 2017. "The Impact of the Exchange Rate and Trade Composition on China’s Trade Balance Vis-à-Vis Selected Partner Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 59(3), pages 311-344, September.
    2. Manuel Cabral & Joana Silva, 2006. "Intra-Industry Trade Expansion and Employment Reallocation between Sectors and Occupations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 496-520, October.

    More about this item

    Keywords

    Comparative advantage; Intra-industry trade; Fragmentation; EU; China;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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