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The China Syndrome: A Cross-Country Evidence

Author

Listed:
  • Mina Taniguchi

    (Department of Economics and MGSE, University of Munich)

  • Kozo Kiyota

    (Keio Economic Observatory, Keio University)

  • Sawako Maruyama

    (Faculty of Economics, Kindai University)

Abstract

While in many advanced countries the increasing import competition from China on employment is a major concern for policymakers and the general public, its impact of Chinese import competition could be different across countries, depending upon the volume and the composition of the products. This paper examines the impact of the China shock on employment in six advanced countries. We find that the import penetration of final goods from China has negative effects on manufacturing employment in these countries, whereas the import penetration of intermediate inputs from and the exports to China could have positive effects. Moreover, such positive effects could offset or even outweigh the negative effects in some countries. These results together suggest that a careful interpretation is needed when evaluating the external validity of the China shock that is obtained in one country.

Suggested Citation

  • Mina Taniguchi & Kozo Kiyota & Sawako Maruyama, 2021. "The China Syndrome: A Cross-Country Evidence," Keio-IES Discussion Paper Series 2021-003, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2021-003
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    References listed on IDEAS

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    Cited by:

    1. Dorn, David & Levell, Peter, 2021. "Trade and Inequality in Europe and the US," CEPR Discussion Papers 16780, C.E.P.R. Discussion Papers.
    2. Endoh, Masahiro, 2023. "The China shock and job reallocation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    3. Brandt, Loren & Lim, Kevin, 2024. "Opening up in the 21st century: A quantitative accounting of Chinese export growth," Journal of International Economics, Elsevier, vol. 150(C).
    4. Akira Sasahara & Yumin Sui & Emily Taguchi, 2023. "Immigration, imports, and (im)mutable Japanese labor markets," Keio-IES Discussion Paper Series 2023-002, Institute for Economics Studies, Keio University.

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    More about this item

    Keywords

    The China shock; Cross-country comparisons; Final goods and intermediate inputs; Imports and exports;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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