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Delivery times in international competition: An empirical investigation

Andrea Ciani and Karsten Mau

Journal of Development Economics, 2023, vol. 161, issue C

Abstract: This paper investigates the role of timely delivery in international competition. Using a demand-side, industry-specific measure of time-sensitivity, we assess the effect of Chinese competition on the export performance of Eastern European transition economies into Western European (EU15) destination-product markets. Our empirical analysis relies on exploiting the increase of Chinese competition in global markets during the first decade of the 2000s. We find evidence of heterogeneous adjustments to Chinese competition among Eastern European exporters due to the differential importance of timely delivery across sectors (i.e. time-sensitivity). While we observe sizable real displacement effects, they appear to be at least 50 percent smaller for time-sensitive exports. Relying on firm-level customs data, we establish that this mechanism also plays a role for responses to Chinese competition within firms.

Keywords: Delivery times; Comparative advantage; International competition; China; Europe (search for similar items in EconPapers)
JEL-codes: F14 F15 F61 L25 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:161:y:2023:i:c:s0304387822001596

DOI: 10.1016/j.jdeveco.2022.103017

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