Export competition with China and firms' coping strategies
Bibliographic Data
| ID | 9720802 |
|---|---|
| Authors | Katariina Nilsson Hakkala (University of the Philippines Diliman, ETLA Research Institute and Aalto University School of Business, corresponding author), Yao Pan (0000-0002-2796-8009, Amazon Inc.) |
| Year | 2024 |
| Volume | 91 |
| Issue | 364 |
| Pages | 1454-1481 |
| Publication date | 2024-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/ecca.12542 |
| OpenAlex | W4401366737 |
| Language | EN |
| References cited | 43 |
This paper analyses how intensified Chinese competition in export markets affects firms' coping strategies. Using a novel identification approach that exploits changes in China's product‐specific export policies across industries, we find that Chinese export competition reduces the aggregate value of product‐ and destination‐specific exports of Finland, primarily by putting a downward pressure on export prices. The firm‐level analysis using Finnish administrative data shows that firms undertake larger price cuts for homogeneous products than for differentiated export products. We analyse further export firms' coping strategies on product range margin, and find that firms drop their marginal products as the Chinese export competition intensifies. Our results highlight the increasing importance of competition with China for exporters from developed countries
Business · China · Chinese market · Competition (biology) · Coping (psychology) · Economics · Homogeneous · Industrial organization · International economics · International trade · Margin (machine learning) · Economic Growth and Productivity · Global trade and economics · International Business and FDI
Trade Adjustment
Multiproduct Firms and Trade Liberalization
Policy Uncertainty, Trade, and Welfare
Multi-Product Firms and Flexible Manufacturing in the Global Economy
The Wage Effects of Offshoring
Market Size, Competition, and the Product Mix of Exporters
Networks versus markets in international trade
Import Competition and the Great US Employment Sag of the 2000s
Misallocation and Manufacturing TFP in China and India
The China Syndrome
The Effects of Entry on Incumbent Innovation and Productivity
Import Competition and Quality Upgrading
Multiproduct Firms and Product Turnover in the Developing World
Fear of China
Success and failure of African exporters
Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing
Trade Induced Technical Change? The Impact of Chinese Imports on Innovation, IT and Productivity
Multi‐Product Exporters
| Citation velocity | historical |
|---|---|
| Highly cited | No |