Industry dynamics and competition from low-wage countries: evidence on Italy

Stefano Federico

No 879, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper analyses the effect of competition from low-wage countries on domestic activity, using data on 230 Italian manufacturing sectors between 1995 and 2007. We find that low-wage import penetration is negatively related to employment and other measures of activity. The effect is significantly lower in more skill, capital and R&D-intensive sectors and in more vertically differentiated sectors. There is also evidence of significant effects of low-wage competition through inter-industry linkages: employment is negatively related to low-wage import penetration in downstream sectors but positively related to low-wage import penetration in upstream sectors.

Keywords: import penetration; low-wage country competition; factor proportions; inter-industry linkages (search for similar items in EconPapers)
JEL-codes: D57 F14 F16 L60 (search for similar items in EconPapers)
Date: 2012-09
New Economics Papers: this item is included in nep-eur, nep-hme and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.bancaditalia.it/pubblicazioni/temi-disc ... 0879/en_tema_879.pdf (application/pdf)

Related works:
Journal Article: Industry Dynamics and Competition from Low-Wage Countries: Evidence on Italy (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_879_12

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().