Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250158 
Year of Publication: 
2021
Series/Report no.: 
JRC Working Papers in Economics and Finance No. 2021/9
Publisher: 
European Commission, Ispra
Abstract: 
This paper investigates the role of timely delivery in international competition. Using a demand-side, industry-specific measure of time-sensitivity, we assess the effect of Chinese competition on the export performance of Eastern European transition economies into Western European (EU15) destination-product markets. Our empirical analysis relies on exploiting the increase of Chinese competition in global markets during the first decade of the 2000s. We find evidence of heterogeneous adjustments to Chinese competition among Eastern European exporters due to the differential importance of timely delivery across sectors (i.e. timesensitivity). While we observe sizable real displacement effects, they appear to be at least 50 percent smaller for time-sensitive exports. Relying on firm-level customs data, we establish that this mechanism also plays a role for responses to Chinese competition within firms.
Subjects: 
Time sensitivity
International competition
China
JEL: 
F14
F15
F61
L25
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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