Premium
Chinese export competition, declining exports and adjustments at the industry and regional level in Europe
Author(s) -
Flückiger Matthias,
Ludwig Markus
Publication year - 2015
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/caje.12170
Subject(s) - competition (biology) , international trade , unemployment , business , manufacturing sector , international economics , product (mathematics) , unemployment rate , export performance , economics , economic growth , ecology , biology , geometry , mathematics
We analyze how a set of 22 European countries was affected by increased Chinese export competition between 1995 and 2008. Employing product‐group level data, we observe a reduction in the export volumes of European countries due to increased Chinese export competition. This deceleration in the export sector induces changes within the manufacturing industries, especially a decline in employment. When using more aggregated, regional‐level data, our analysis shows that the industry sector as a whole declines, resulting in an increased unemployment rate. The importance of Chinese export competition for Europe is attributable to its high export intensity.