DP8544 The arrival of cheap goods: Measuring the impact of Chinese import competition on Nordic prices
Author(s): | Raphael Auer, Andreas M Fischer, Andreas Kropf |
Publication Date: | August 2011 |
Keyword(s): | comparative advantage, globalization, intra-industry trade |
JEL(s): | F11, F12, F14, F16, F40 |
Programme Areas: | International Macroeconomics |
Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=8544 |
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.