The Impact of Import Competition from China on Firm-level Productivity Growth in the EU

Klaus Friesenbichler, Agnes Kügler and Andreas Reinstaller ()

No 323, Research Papers from Büro des Produktivitätsrates

Abstract: We re-examined the impact of rising imports from China on intra-firm productivity growth in the EU over the period 2005-2016. In contrast to previous studies, we find that an increasing share of Chinese imports in total imports slowed down productivity growth over the observation period. This was particularly the case after the 2008/09 financial crisis and was more pronounced for firms with lower productivity growth. On average, the net effect of China's increasing import intensity on productivity growth has been negative for EU firms since 2010. At the beginning of the sample, firms with median growth experienced a modest growth-enhancing effect, which turned slightly negative in the last observation year. The effect was muted for high-growth multinationals, which experienced a productivity growth premium from Chinese import competition at higher growth rates. Compared to the US, the negative impact of Chinese import competition on the performance of EU firms is visible with a time lag.

Keywords: import competition; productivity; manufacturing; EU; China; financial crisis (search for similar items in EconPapers)
JEL-codes: D24 F14 J24 L25 L60 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2023-08-12
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Oxford Bulletin of Economics and Statistics, April 2024, vol. 86(2), pages 236-256

Downloads: (external link)
https://www.produktivitaetsrat.at/dam/jcr:bca945fb ... 03-23_ImportComp.pdf
Our link check indicates that this URL is bad, the error code is: 400 Bad Request (https://www.produktivitaetsrat.at/dam/jcr:bca945fb-1923-436d-aa1e-d9753d16ac86/RP_03-23_ImportComp.pdf [303 See Other]--> https://www.produktivitaetsrat.at/error_path/400.html?al_req_id=ZuQVzYWk6Sl4slls4s1faAAAAUI)

Related works:
Working Paper: The Impact of Import Competition from China on Firm-level Productivity Growth in the EU (2021)
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:bpr:respap:0323

Access Statistics for this paper

More papers in Research Papers from Büro des Produktivitätsrates Contact information at EDIRC.
Bibliographic data for series maintained by Anna Brunner ().