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Title: The arrival of cheap goods: Measuring the impact of Chinese import competition on Nordic prices

Author(s): Raphael Auer, Andreas M Fischer and Andreas Kropf

Publication Date: August 2011

Keyword(s): comparative advantage, globalization and intra-industry trade

Programme Area(s): International Macroeconomics

Abstract: What is the impact of Chinese import competition on Nordic producer prices? In a panel covering 23 (2 digit) NACE manufacturing sectors from 1995 to 2008, instrumental variable estimations predict that when Chinese imports capture a 1% increase in market share, Nordic producer prices decrease by about 2.0%. This China effect entails a drop of 14% in producer prices for the analyzed period.

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Bibliographic Reference

Auer, R, Fischer, A and Kropf, A. 2011. 'The arrival of cheap goods: Measuring the impact of Chinese import competition on Nordic prices'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8544