Opposing firm-level responses to the China shock: output competition versus input supply

Philippe Aghion, Antonin Bergeaud, Matthieu Lequien, Marc J. Melitz and Thomas Zuber

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We decompose the “China shock” into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at the firm level, we show that the output shock is detrimental to firms’ sales, employment, and innovation. Moreover, this negative impact is concentrated in low-productivity firms. On the other hand, the impact of the input supply shock is reversed.

JEL-codes: F3 G3 J1 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2024-05-01
New Economics Papers: this item is included in nep-bec, nep-cna, nep-ino, nep-int, nep-inv, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in American Economic Journal: Economic Policy, 1, May, 2024, 16(2), pp. 249 - 269. ISSN: 1945-7731

Downloads: (external link)
http://eprints.lse.ac.uk/123934/ Open access version. (application/pdf)

Related works:
Journal Article: Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply (2024)
Working Paper: Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply (2024)
Working Paper: Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply (2024)
Working Paper: Opposing firm-level responses to the China shock: Output competition versus input supply (2023)
Working Paper: Opposing Firm Level Responses to the China Shock: Output Competition versus Input Supply (2022)
Working Paper: Opposing firm-level responses to the China shock: output competition versus input supply (2022)
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:ehl:lserod:123934

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().