The China Syndrome: A Cross-Country Evidence

Mina Taniguchi, Kozo Kiyota and Sawako Maruyama
Additional contact information
Mina Taniguchi: Department of Economics and MGSE, University of Munich
Sawako Maruyama: Faculty of Economics, Kindai University

No 2021-003, Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University

Abstract: While in many advanced countries the increasing import competition from China on employment is a major concern for policymakers and the general public, its impact of Chinese import competition could be different across countries, depending upon the volume and the composition of the products. This paper examines the impact of the China shock on employment in six advanced countries. We find that the import penetration of final goods from China has negative effects on manufacturing employment in these countries, whereas the import penetration of intermediate inputs from and the exports to China could have positive effects. Moreover, such positive effects could offset or even outweigh the negative effects in some countries. These results together suggest that a careful interpretation is needed when evaluating the external validity of the China shock that is obtained in one country.

Keywords: The China shock; Cross-country comparisons; Final goods and intermediate inputs; Imports and exports (search for similar items in EconPapers)
JEL-codes: F16 J21 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2021-01-07
New Economics Papers: this item is included in nep-cna, nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ies.keio.ac.jp/upload/pdf/en/DP2021-003.pdf (application/pdf)

Related works:
Journal Article: The China syndrome: A cross‐country evidence (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:keo:dpaper:2021-003

Access Statistics for this paper

More papers in Keio-IES Discussion Paper Series from Institute for Economics Studies, Keio University Contact information at EDIRC.
Bibliographic data for series maintained by Institute for Economics Studies, Keio University ().