University of Sussex
Browse

File(s) not publicly available

Import competition from and offshoring to China: A curse or blessing for firms?

journal contribution
posted on 2023-06-08, 23:39 authored by Giordano Mion, Linke Zhu
We use Belgian manufacturing firm-level data over the period 1996–2007 to analyze the impact of imports from different origins on firm employment growth, exit, and skill upgrading. For this purpose, we use both industry-level and firm-level imports by country of origin and further distinguish between firm-level offshoring of final versus intermediate goods. Results indicate that China is different from both other low-wage and OECD countries. Industry-level import competition from China reduces firm employment growth and induce skill upgrading in low-tech manufacturing industries. On the other hand, import competition has no effect on firm survival, while offshoring of finished goods to China actually increases firms' probability of survival. In terms of skill upgrading, the effect of Chinese imports is large. Import competition from China accounts for 27% (48%) of the total observed increase – within and between firms – in the share of non-production (highly educated) workers in low-tech Belgian manufacturing over our period of analysis. Offshoring to China further accounts for a small but significant increase in the share of non-production workers.

History

Publication status

  • Published

Journal

Journal of International Economics

ISSN

0022-1996

Publisher

Elsevier

Issue

1

Volume

89

Page range

202-215

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2015-12-04

Usage metrics

    University of Sussex (Publications)

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC