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The impact of China on manufacturing exports of Italy and Germany

Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi
Authors registered in the RePEc Author Service: Giorgia Giovannetti (), Marco Sanfilippo () and Margherita Velucchi ()

No 2012/26, RSCAS Working Papers from European University Institute

Abstract: This paper analyses the impact of China on the export performance of Italy and Germany to their main trading partners in the OECD markets. Given a strong specialization in the manufacturing sector, these two countries are exposed to China’s competition. Italy, with a productive structure based on so-called “traditional” sectors, is likely to be more vulnerable to China’s competitive pressure. Using data for the period 1995-2009, this paper estimates the impact of China on Italy and Germany’s market shares at a very disaggregated sector level. Results show that China has affected Italy’s and Germany’s market shares in different ways, especially during the post-WTO accession period, being on average more harmful for the former.

Keywords: China; Gravity Model; Market Shares; F-10; F-14 (search for similar items in EconPapers)
Date: 2012-06-13
New Economics Papers: this item is included in nep-eur and nep-int
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