David Versus Goliath: The Impact of Chinese Competition on Developing Countries
Date
2009
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
PERGAMON-ELSEVIER SCIENCE LTD
Abstract
We use detailed Chilean plant-level data from 1990 to 2000 to study the impact of Chinese import competition in manufacturing industries. We study whether China's imports have been associated with a downsizing of manufacturing plants or whether firms have escaped Chinese competition through changes in output mix, productivity catch-up, or increased exports. Our results show that imports from China have negatively affected employment growth on surviving plants, and increased the probability of exit. In contrast to previous evidence for the United States, we do not find evidence that manufacturing plants have adjusted by producing more sophisticated goods or by exporting. (C) 2008 Elsevier Ltd. All rights reserved.
Description
Keywords
China, import competition, manufacturing plants, FIRM GROWTH, TRADE, SURVIVAL, SIZE