Opposing firm-level responses to the China shock: Output competition versus input supply

Réactions opposées des entreprises à la hausse des importations chinoises: concurrence sur les ventes ou sur les intrants ?

Aghion Philippe, Bergeaud Antonin, Matthieu Lequien, Melitz Marc and Zuber Thomas
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Aghion Philippe: Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France
Bergeaud Antonin: Centre de recherche de la Banque de France - Banque de France
Melitz Marc: Harvard University
Zuber Thomas: Centre de recherche de la Banque de France - Banque de France

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Abstract: We decompose the "China shock" into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at the firm-level, we show that the output shock is detrimental to firms' sales, employment, and innovation. Moreover, this negative impact is concentrated on low-productivity firms. By contrast, we find a positive effect - although often not significant - of the input supply shock on firms' sales, employment and innovation.

Keywords: Competition shock import; patent; firms; import; entreprises; importations; brevets; Concurrence (search for similar items in EconPapers)
Date: 2023-01
Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05373292v1
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Related works:
Journal Article: Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply (2024)
Working Paper: Opposing firm-level responses to the China shock: output competition versus input supply (2024)
Working Paper: Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply (2024)
Working Paper: Opposing Firm-Level Responses to the China Shock: Output Competition versus Input Supply (2024)
Working Paper: Opposing firm-level responses to the China shock: Output competition versus input supply (2023)
Working Paper: Opposing Firm Level Responses to the China Shock: Output Competition versus Input Supply (2022)
Working Paper: Opposing firm-level responses to the China shock: output competition versus input supply (2022)
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