EconPapers    
Economics at your fingertips  
 

The Chinese are Here: Firm Level Analysis of Import Competition and Performance in Sub-Saharan Africa

Christian K. Darko, Giovanni Occhiali and Enrico Vanino

No 273142, ETA: Economic Theory and Applications from Fondazione Eni Enrico Mattei (FEEM)

Abstract: This study uses firm level data on 19 Sub-Saharan Africa countries between 2004 and 2016 to provide a rigorous analysis on the impact of Chinese import competition on productivity, skills, and performance of firms., We measure import competition and ports accessibility at the city-industry level to identify the relevance of firms’ location in determining the impact of Chinese imports competition. To address endogeneity concerns, a time-varying instrument for Chinese imports based on the interaction between an exogenous geographic characteristic and a shock in transportation technology is developed. The results show that imports competition has a positive impact on firm performance, mainly in terms of productivity catch-up and skills upgrading. Of particular interest is the finding that the effects of import competition from China are stronger for more remote firms that have lower port accessibility, an indication that Chinese imports in remote areas improves productivity of laggard firms, employment, and intensity of skilled workers. Our findings indicate that African firms are improving their performance as a consequence of the higher Chinese import intensity, mainly through direct competition and the use of higher quality inputs of production sourced from China.

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 47
Date: 2018-05-24
New Economics Papers: this item is included in nep-afr, nep-bec, nep-cna, nep-eff and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/273142/files/NDL2018-014.pdf (application/pdf)
https://ageconsearch.umn.edu/record/273142/files/NDL2018-014.pdf?subformat=pdfa (application/pdf)

Related works:
Working Paper: The Chinese are Here: Firm Level Analysis of Import Competition and Performance in Sub-Saharan Africa (2018) Downloads
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:ags:feemth:273142

DOI: 10.22004/ag.econ.273142

Access Statistics for this paper

More papers in ETA: Economic Theory and Applications from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2024-06-09
Handle: RePEc:ags:feemth:273142