The Impact of China on Manufacturing Exports of Italy and Germany
Title: The Impact of China on Manufacturing Exports of Italy and Germany
Series/Number: EUI RSCAS; 2012/26; Global Governance Programme-21; Global Economics
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.
Subject: China; Gravity Model; Market Shares; F-10; F-14
Type of Access: openAccess