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The impact of trade with China and India on Argentina’s manufacturing employment

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  • Castro, Lucio
  • Olarreaga, Marcelo
  • Saslavsky, Daniel

Abstract

For many in Latin America, the increasing participation of China and India in international markets is seen as a looming shadow of two ‘mighty giants’ on the region’s manufacturing sector. Are they really mighty giants when it comes to their impact on manufacturing employment? This paper attempts to answer this question estimating the effects of trade with China and India on Argentina’s industrial employment. We use a dynamic econometric model and industry level data to estimate the effects of trade with China and India on the level of employment in Argentina’s manufacturing sector. Results suggest that trade with China and India only had a small negative effect on industrial employment, even in a period of swift trade liberalization like the nineties.

Suggested Citation

  • Castro, Lucio & Olarreaga, Marcelo & Saslavsky, Daniel, 2006. "The impact of trade with China and India on Argentina’s manufacturing employment," MPRA Paper 538, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:538
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    Cited by:

    1. Zeng, Xiangquan & Yuxue, Cui & Shisong, Qing & Yumei, Yang, 2011. "Real Exchange Rate, Foreign Trade and Employment: Evidence from China," IZA Discussion Papers 5931, Institute of Labor Economics (IZA).
    2. Álvarez, Roberto & Claro, Sebastián, 2009. "David Versus Goliath: The Impact of Chinese Competition on Developing Countries," World Development, Elsevier, vol. 37(3), pages 560-571, March.
    3. Pooja Khanna, 2021. "Impact of Trade Liberalisation on the Informal Sector—A Study for the BRICS," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(1), pages 101-113, March.
    4. Daniel Goya, 2019. "Chinese competition and network effects on the extensive margin," Working Papers 2019-01, Escuela de Negocios y Economía, Pontificia Universidad Católica de Valparaíso.
    5. Daniel Lederman & Marcelo Olarreaga & Guillermo E. Perry, 2009. "China's and India's Challenge to Latin America : Opportunity or Threat?," World Bank Publications - Books, The World Bank Group, number 2591, December.
    6. Evelyn Devadason, 2008. "China and India in World Trade: Are the Asia Giants a Threat to Malaysia?," Global Economic Review, Taylor & Francis Journals, vol. 37(4), pages 447-467.
    7. Calderón, César & Casacuberta, Carlos & Castro, Lucio & Cravino, Javier & Feenstra, Robert C. & Freund, Caroline & Gandelman, Néstor & Hanson, Gordon H. & Kee, Hiau Looi & Lederman, Daniel & Olarreaga, 2009. "China's and India's Challenge to Latin America: Opportunity or Threat?," IDB Publications (Books), Inter-American Development Bank, number 357.
    8. Roberto Álvarez & Sebastián Claro, 2007. "On the Sources of China’s Export Growth," Working Papers Central Bank of Chile 426, Central Bank of Chile.
    9. Daniel Lederman & Marcelo Olarreaga & Guillermo Perry, 2007. "Latin America´s response to China and India: overview of research findings and policy implications - Observatorio de Política," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 45(1), pages 149-193, Junio.
    10. Lucio Castro & Daniel Saslavsky, 2008. "Trade with China and India and Manufacturing Labour Demand in Argentina," WIDER Working Paper Series RP2008-108, World Institute for Development Economic Research (UNU-WIDER).
    11. Eliana Rubiano-Matulevich, 2010. "El crecimiento de China e India y su relación con el patrón de especialización comercial de Estados Unidos, la Unión Europea y Colombia," Revista de la Maestría de Derecho Económico, Universidad Javeriana - Derecho Económico, December.
    12. Yezid HERNÁNDEZ LUNA, 2011. "The impact of trade on employment in Colombian," Archivos de Economía 9227, Departamento Nacional de Planeación.
    13. ITO Koji, 2013. "Impact of Growing Imports: A comparison of international and domestic firms in the Japanese manufacturing industry (Japanese)," Discussion Papers (Japanese) 13034, Research Institute of Economy, Trade and Industry (RIETI).
    14. Daniel Lederman & Marcelo Olarreaga & Guillermo E. Perry, 2009. "China's and India's Challenge to Latin America : Opportunity or Threat?," World Bank Publications, The World Bank, number 2591, September.
    15. Artuc,Erhan & Lederman,Daniel & Rojas Alvarado,Luis Diego & Artuc,Erhan & Lederman,Daniel & Rojas Alvarado,Luis Diego, 2015. "The rise of China and labor market adjustments in Latin America," Policy Research Working Paper Series 7155, The World Bank.

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    More about this item

    Keywords

    China; Latin America; Trade; Import Competition; Trade and Labor Market Interactions; Employment;
    All these keywords.

    JEL classification:

    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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