China's competition and the export price strategies of developed countries
International review of applied economics, 2016, Vol. 30, No. 2, pp. 238-254
GIOVANNETTI, Giorgia, SANFILIPPO, Marco, China's competition and the export price strategies of developed countries, International review of applied economics, 2016, Vol. 30, No. 2, pp. 238-254 - https://hdl.handle.net/1814/61536
Retrieved from Cadmus, EUI Research Repository
This paper analyzes the impact of Chinese competition on developed countries' export prices. The empirical application is on Italy, one of the main European manufacturing exporters with exports at high risk of competition from China. Our results show that, following China's entry into the WTO, the price strategies of Italian firms has been affected. While in general the increasing Chinese export competition resulted in an upgrading of products exported, the impact has been different according to the sector and technological level. The incentives to upgrade have been stronger for low technology sectors, where competition is tougher and varieties of products sold lower. To highlight quality differentials, and isolate the effects on the different segments of the distribution of Italy's export prices, we run quantile regressions. We find that are mainly those products sold at low prices to face a strong pressure to upgrade.
Cadmus permanent link: https://hdl.handle.net/1814/61536
Full-text via DOI: 10.1080/02692171.2015.1102205
ISSN: 0269-2171; 1465-3486
Publisher: Taylor & Francis (Routledge)
Keyword(s): China Export price competition Italy Heterogeneity Import Competition Quality Trade Growth Firms
Files associated with this item
There are no files associated with this item.