Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227664
Authors: 
Kvedaras, Virmantas
Cseres-Gergely, Zsombor
Year of Publication: 
2020
Series/Report no.: 
JRC Working Papers in Economics and Finance No. 2020/1
Abstract: 
Exports from China have surged substantially since its accession to the World Trade Organization in 2001. We investigate how this expansion affected income inequality within European regions by separating the trade pressure experienced in external and domestic markets, as well as exploring the importance of several economic mechanisms. Despite some intermediate adjustments, softening the influence of Chinese pressure and even facilitating European exports, we establish a significant increase of inequality that is concentrated mostly in the lower part of regional income distributions. We determine a significant channeling of the trade pressure to income inequality through the shrinking manufacturing sector, the increasing unemployment rate, and the technological upgrade of manufacturing exports, together with an increasing demand for better-qualified labor.
Subjects: 
China
EU
globalization
income
inequality
regions
trade
JEL: 
D31
D63
F16
F61
Persistent Identifier of the first edition: 
ISBN: 
978-92-76-18590-1
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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