Globalization and Inflation in Europe | Zendy

Raphael Auer | Zendy; Kathrin Degen | Zendy; Andreas M. Fischer | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Globalization and Inflation in Europe

Author(s) -

Raphael Auer,

Kathrin Degen,

Andreas M. Fischer

Publication year - 2010

Publication title -

federal reserve bank of dallas, globalization and monetary policy institute working papers

Language(s) - English

DOI - 10.24149/gwp65

Subject(s) - competition (biology) , economics , wage , inflation (cosmology) , globalization , international economics , western europe , international trade , panel data , low wage , european union , market economy , physics , theoretical physics , ecology , econometrics , biology

What is the impact of import competition from other low-wage countries (LWCs) on inflationary pressure in Western Europe? This paper seeks to understand whether labor-intensive exports from emerging Europe, Asia, and other global regions have a uniform impact on producer prices in Germany, France, Italy, Sweden, and the United Kingdom. In a panel covering 110 (4-digit) NACE industries from 1995 to 2008, IV estimates predict that LWC import competition is associated with strong price effects. More specifically, when Chinese exporters capture 1% of European market share, producer prices decrease about 2%. In contrast, no effect is present for import competition from low-wage countries in Central and Eastern Europe.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research