Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/128379
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Type: | Journal article |
Title: | Is competition from China so special? |
Author: | Heid, B.S. Mínguez, R. Mindondo, A. |
Citation: | The World Economy, 2021; 44(1):64-88 |
Publisher: | Wiley |
Issue Date: | 2021 |
ISSN: | 0378-5920 1467-9701 |
Statement of Responsibility: | Benedikt Heid, Raúl Mínguez, Asier Minondo |
Abstract: | Competition from China is perceived as particularly damaging. We study whether this is true for firm performance. Using the universe of Spanish export transactions, we find that an increase in competition from China does not have a more damaging effect on export revenues, prices and number of exported products than an equally sized increase in competition from other countries. We document, though, that Chinese competition raises the probability that a firm ceases to export a good to a destination more than competition from other countries. This effect declines over time. We document an omitted variable bias in studies focusing only on Chinese competition, even when controlling for unobserved heterogeneity of destinations for different products within firms. |
Keywords: | China; competition; exports; Spain; transaction-level data |
Description: | Version of Record online: 16 September 2020 |
Rights: | © 2020 John Wiley & Sons Ltd |
DOI: | 10.1111/twec.12991 |
Grant ID: | http://purl.org/au-research/grants/arc/DP190103524 |
Published version: | http://dx.doi.org/10.1111/twec.12991 |
Appears in Collections: | Aurora harvest 4 Economics publications |
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hdl_128379.pdf | Accepted version | 499.38 kB | Adobe PDF | View/Open |
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