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The impact of China on manufacturing exports of Italy and Germany

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  • Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi

Abstract

This paper analyses the impact of China on the export performance of Italy and Germany to their main trading partners in the OECD markets. Given a strong specialization in the manufacturing sector, these two countries are exposed to China’s competition. Italy, with a productive structure based on so-called “traditional” sectors, is likely to be more vulnerable to China’s competitive pressure. Using data for the period 1995-2009, this paper estimates the impact of China on Italy and Germany’s market shares at a very disaggregated sector level. Results show that China has affected Italy’s and Germany’s market shares in different ways, especially during the post-WTO accession period, being on average more harmful for the former.

Suggested Citation

  • Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi, 2012. "The impact of China on manufacturing exports of Italy and Germany," RSCAS Working Papers 2012/26, European University Institute.
  • Handle: RePEc:rsc:rsceui:2012/26
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    References listed on IDEAS

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    Cited by:

    1. Cesare Imbriani & Piergiuseppe Morone & Francesco Renna, 2015. "Innovation and Exporting: Does Quality Matter?," The International Trade Journal, Taylor & Francis Journals, vol. 29(4), pages 273-290, October.
    2. Lewis, John & De Schryder, Selien, 2015. "Export dynamics since the Great Trade Collapse: a cross-country analysis," Bank of England working papers 535, Bank of England.

    More about this item

    Keywords

    China; Gravity Model; Market Shares; F-10; F-14;

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