The Impact of Import Competition from China on Firm-level Productivity Growth in the EU
Klaus Friesenbichler (),
Agnes Kügler () and
Andreas Reinstaller ()
No 623, WIFO Working Papers from WIFO
We revisit the impact of rising imports from China on within-firm labour productivity growth in the EU. We analyse the period 2003-2016 which covers the recent increase in technology-intensive imports from China. We uncover a changing relationship over time. Higher fractions of Chinese imports in aggregate imports exert an adverse effect on productivity growth in in later periods, especially after the financial crisis 2008-09. This mirrors the changing nature of trade with China, reversing the growth-enhancing effect of import-competition. This effect is more pronounced for domestic firms, while multinationals are able to benefit from Chinese imports. Both effects become stronger at higher productivity-growth intensities. The growth-dampening effects particularly strong for firms in low-tech industries and in Southern Europe.
Keywords: Import Competition; Multinational Firms; Productivity; Manufacturing; EU; China (search for similar items in EconPapers)
Pages: 61 pages
New Economics Papers: this item is included in nep-bec, nep-cna, nep-eff, nep-int and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:wfo:wpaper:y:2021:i:623
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