Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154053
Authors: 
Stracca, Livio
Year of Publication: 
2013
Series/Report no.: 
ECB Working Paper 1620
Abstract: 
This paper evaluates the impact of the rise of large emerging manufacturing exporters such as China and India on economic growth in advanced countries. After illustrating the possible theoretical channels, I estimate a growth regression based on 3-year average data augmented with country-specific measures of import and export competition from China and India using instrumental variables. Stronger import competition from China and India leads to stronger income growth in advanced countries, but to a loss of manufacturing jobs. A more flexible labour market, lower concentration of employment in manufacturing and pre-existing trade links with China and India help advanced countries to maximise the growth dividend resulting from their rise in world export markets.
Subjects: 
China
comparative advantage
economic growth
globalisation
India
offshoring
trade
JEL: 
F02
F15
Document Type: 
Working Paper

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