The impact of Chinese competition on third markets: An analysis by region and technological category

Módolo, Débora Bellucci; Hiratuka, Célio

doi:10.1111/dpr.12290

Cited by 10 publications

(7 citation statements)

References 36 publications

(93 reference statements)

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“…In general, effects are higher in more traditional sectors such as textiles, clothing and footwear, but also are present in sectors of higher technological content, such as chemicals, machinery and electrical and electronic equipment. Modolo and Hiratuka (2017) found the same results for the world market, although the negative effects of Chinese competition in developing countries in Asia and in Mexico and the Caribbean were higher than those observed in South American countries.…”

Section: Recent Changes In China-la Economic Relationssupporting

confidence: 61%

Changes in the Chinese Development Strategy After the Global Crisis and Its Impacts in Latin America

Hiratuka

2018

Rev. econ. contemp.

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This paper aims to analyze the recent changes in economic relations between Latin American countries and China in the context of the transformations occurred in the latter’s development strategy after the global financial crisis. The text argues that, in relation to the first decade of the twenty-first century, connections linked to FDI, financing flows, and infrastructure projects have been growing in importance and present new challenges to Latin America, which surpass the ones based only on trade flows.

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Section: Recent Changes In China-la Economic Relationssupporting

confidence: 61%

Changes in the Chinese Development Strategy After the Global Crisis and Its Impacts in Latin America

Hiratuka

2018

Rev. econ. contemp.

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“…For the two LAC countries in the sample, a 1% increase in Chinese textile exports is found to decrease Mexican exports by 0.82% and exports from the Dominican Republic by 0.31%. Módolo and Hiratuka (2017) find similar displacement effects for the manufacturing sector from 2000 to 2009 using 2SLS with bilateral distance as an instrumental variable. Annual product data is aggregated to technological intensities following Lall (2000).…”

Section: Augmented Gravity and Export Competitionmentioning

confidence: 63%

“…Starting with Eichengreen et al (2004), these studies rely on augmented versions of the gravity regression, including Chinese exports among its covariates. Work so far includes analyses of the effects of exports competition between China and Asia (Athukorala, 2009;Eichengreen et al, 2004Eichengreen et al, , 2007Greenaway et al, 2010;Kong & Kneller, 2016), African (Edwards & Jenkins, 2014;Geda & Meskel, 2007;Giovannetti & Sanfilippo, 2009), and European countries (Elleby et al, 2018;Giovannetti et al, 2012;Stanojevic et al, 2020), as well as sector-specific applications that include individual Latin American countries (Lederman et al, 2007;Módolo & Hiratuka, 2017;Pham et al, 2017;Zeidan, 2015). Lederman et al (2007) examine the partial correlation between Chinese and Indian non-fuel exports and LAC trade with third markets between 2002 and 2004.…”

Section: Augmented Gravity and Export Competitionmentioning

confidence: 99%

Export competition between China and Latin America and the Caribbean in the United States market

Welslau,

Artecona,

Perrotti

2024

World Economy

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We investigate export competition between China and Latin America and the Caribbean (LAC) in the United States market between 2002 and 2022. Using a sample of 33 exporters and 10‐digit Harmonised Tariff Schedule (HS) level trade data, we estimate a structural gravity model using an instrumental variable constructed from Chinese exports to eight other industrialised nations. We use a first‐order Taylor‐series expansion à la Baier and Bergstrand (Journal of International Economics, 2009a, 77, 77) to approximate the multilateral price terms pointed out by Anderson and Van Wincoop (American Economic Review, 2003, 93, Article 1). The results show that the impact of Chinese exports on United States imports from LAC is negative and statistically significant across several model specifications, levels of aggregation, and sectors. A percentage increase in imports from China decreased imports from LAC by ca. 0.75%. The displacement effect is ca. 0.32 for manufacturing products, 1.01 for resource‐based products, 1.33 when estimated only for South America, 0.25 for the Caribbean, and not significant for Central America.

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“…Triggered by China's rise in the world economy, various studies have focused on the Chinese trade expansion and its effects on other countries, examining specifically if Chinese exports have displaced exports of other countries in third markets. Even though Modolo and Hiratuka (2017) conclude that the effect of Chinese exports on global exports is mainly negative, their review of the literature shows that this conclusion had been disputed in previous studies. 4 The literature examining the impact of FDI is far less controversial than the trade literature.…”

Section: Introductionmentioning

confidence: 91%

Three decades of globalisation: Which countries won, which lost?

Gunter

Wilcher

2020

World Economy

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K E Y W O R D Scapital flows, economic integration, globalisation, marginalisation, trade | 1077 GUNTER aNd WILCHER shed more light on possible explanations for why some countries have been drivers of globalisation, while others have been marginalised. The last section provides some conclusions. | BRIEF REVIEW OF THE LITERATUREThough trade has been considered an engine of growth since at least Adam Smith, there have been doubts if all countries benefit from international trade. Given that the arguments and literature of trade optimists are relatively well known, 2 this literature review focuses on more critical contributions about the benefits of trade, especially for the developing countries, using a historical perspective.There is a long literature related to unequal economic relations between developing and industrialised countries dating back to the middle of the twentieth century grounded in so-called dependency theory built on Marxist theories of exploitive imperialist relations between the European and the non-European world. Building on a perceived unfair international order, a set of proposals was made during the 1970s by various developing countries, which supported by the United Nations Conference on Trade and Development (UNCTAD) led to a United Nations (1974) General Assembly Resolution declaring the establishment of a New International Economic Order (NIEO). 3 Examining the trade policies of the European Community (EC) towards the African, Caribbean and Pacific (ACP) countries, Agarwal, Dippl, and Langhammer (1985) concluded that the trade marginalisation of the ACP countries has been due largely to the overall economic stagnation of many ACP countries, specific barriers inhibiting ACP export performance, including droughts and desertification, plant and animal diseases, high transportation costs, expensive and often inadequate telecommunications, as well as the impact of oil price increases. Following up on the evolution of EC-ACP trade, Cosgrove (1994) concluded that additional factors for the trade marginalisation of ACP countries have been the high incidence of HIV/AIDS in Africa as well as an erosion of specific trade preferences since the mid-1980s.Examining shares of world trade, investment and output, Collier (1995) shows that sub-Saharan Africa was more marginalised in 1994 than at any time in the previous 50 years. He examines four possible explanations for this marginalisation: insufficient reform, insufficient scale, the high-risk environment and weakness of agencies of restraint. Based on a 1994 survey of 150 firms, which had either invested or were interested in investing in five African countries, Collier concludes that the most serious deterrent for investment was political and policy uncertainty, followed by fears of policy reversal, fear of expropriation (including failure of the legal system to protect private agents from government) and the risk of breach of contract (which is in effect a failure of the judiciary to create an environment in which contracts are respected). Ng an...

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The impact of Chinese competition on third markets: An analysis by region and technological category

Cited by 10 publications

References 36 publications

Changes in the Chinese Development Strategy After the Global Crisis and Its Impacts in Latin America

Changes in the Chinese Development Strategy After the Global Crisis and Its Impacts in Latin America

Export competition between China and Latin America and the Caribbean in the United States market

Three decades of globalisation: Which countries won, which lost?

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