China’s WTO accession and income inequality in European regions: External pressure and internal adjustments
Virmantas Kvedaras and
Zsombor Cseres-Gergely ()
Economic Analysis and Policy, 2021, vol. 69, issue C, 34-53
Exports from China have surged substantially since its accession to the World Trade Organization in 2001. We investigate how this expansion affected income inequality within European regions by separating the trade pressure experienced in external and domestic markets, as well as exploring the importance of several economic mechanisms. Despite some intermediate adjustments, softening the influence of Chinese pressure and even facilitating European exports, we establish a significant increase of inequality that is concentrated mostly in the lower part of regional income distributions. We determine a significant channeling of the trade pressure to income inequality through the shrinking manufacturing sector, the increasing unemployment rate, and the technological upgrade of manufacturing exports, together with an increasing demand for better-qualified labor.
Keywords: China; EU; Globalization; Income; Inequality; Regions; Trade (search for similar items in EconPapers)
JEL-codes: D31 D63 F16 F61 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: China's WTO accession and income inequality in European regions: External pressure and internal adjustments (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:69:y:2021:i:c:p:34-53
Access Statistics for this article
Economic Analysis and Policy is currently edited by Clevo Wilson
More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().