The China trade shock and the European Union's employment

Mi Dai, Qingyuan Du, Yalin Liu and Jianwei Xu

The Journal of International Trade & Economic Development, 2023, vol. 32, issue 8, 1312-1340

Abstract: This paper analyzes the effect of trade with China on the European Union's industrial and regional employment. Built on a canonical multi-country Ricardian model, we identify and estimate the employment reallocation effect across fifteen EU countries with specific discussions on three channels: import penetration, direct export, and third-market competition vis-à-vis China. Data suggest that the adverse effects stemming from the import penetration and the third-market competition quantitatively dominate the positive effect from the export channel for the effect on the EU. In particular, the third-market competition channel is a key channel for understanding the impact of China trade shock on the EU market, accounting for about 46% and 36% of the total negative effect at the industry level and region level, respectively. Moreover, the third-market competition channel particularly influenced the relative employment growth of the worst-affected industries in the European market.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/09638199.2023.2260010 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:jitecd:v:32:y:2023:i:8:p:1312-1340

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20

DOI: 10.1080/09638199.2023.2260010

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().