Measuring the impact of the Chinese competition on the Mexican Labor Market: 1990–2013

Olvera, Caamal; Rangel‐González, Erick

doi:10.1016/j.najef.2015.09.004

Cited by 7 publications

(5 citation statements)

References 9 publications

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“…This could imply that domestic producers in Chile react to increased competition through downsizing. This is in line with similar studies on Chinese import competition for Mexico that find that increases in Chinese imports generate a reduction on the labour demand for Mexican workers (Caamal-Olvera & Rangel-González, 2015).…”

Section: Employment Growthsupporting

confidence: 91%

Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile

Sotiriou

Rodríguez‐Pose

2021

The Journal of Development Studies

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This paper explores the effects of import competition on the manufacturing sector in Chile following the implementation of the country's two largest Free Trade Agreements (FTA) (with the USA and China). Exploiting cross-industry variation in import exposure, we analyse the effects on manufacturing sales, employment and labour productivity at the finest level of industrial classification (4 digit ISIC level). We detect an overall negative effect of increased Chinese import penetration, owing to substitution effects from low and medium tech imports and a less pronounced effect from USA imports. By introducing interaction effects, we find that the levels of foreign ownership and the export intensity of the domestic industries reverse the negative effect due to the opportunities offered via participation in global value chains. An IV strategy is applied to address standard endogeneity concerns and confirm the robustness of our estimates.

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Section: Employment Growthsupporting

confidence: 91%

Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile

Sotiriou

Rodríguez‐Pose

2021

The Journal of Development Studies

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“…Flückiger and Ludwig (2016) consider European regions and how import exposure leads to declines of industries and unemployment. Studies dealing with non‐high‐income countries were also conducted: Caamal‐Olvera and Rangel‐González (2015) as well as Mendez (2015) combine import exposure from China on Mexican regions with Chinese competition in the US market. Mexico is, however, a special case as Chinese imports to the US affect Mexican regions producing the same goods.…”

Section: Literature Reviewmentioning

confidence: 99%

Austrian regions in the age of globalisation: Trade exposure, urban dynamics and structural change

Sardadvar¹,

Reiner

2021

Regional Science Policy & Practice

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This paper deals with globalisation and urban agglomeration effects on regional employment growth in the agricultural, mining and manufacturing industries. Globalisation's impacts are estimated via import and export exposure measures considering trade with those former Comecon members which accessed the EU, as well as China, the observation period is 1991–2011. Results show that trade exposure with former Comecon members affects regional employment growth in Austria negatively despite a considerable trade surplus. Concerning China, the impacts of import exposure are surprisingly weak while export exposure displays strong positive effects. Population density shows a U‐shaped pattern, suggesting that large urban agglomerations offer some advantages for employment growth in the considered industries.

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“…Our study contributes to a growing literature that examines the impact of the heightened competition from China. One strand of the literature identifies the effects by exploiting variation in Chinese-import competition at the industry level (Bernard et al 2006, Mion & Zhu 2013, an approach that has been applied to Latin American countries by Alvarez & Claro (2008), Iacovone et al (2013), andCaamal-Olvera &Rangel-González (2015). Similar to a recent study evaluating the long-run effects of the China shock (Autor et al 2021), a number of papers examine the impact of Chinese competition by exploiting variation in import exposure across local labor markets (Autor et al 2013, Acemoglu et al 2016, Feler & Mine 2017, Rothwell 2017, with applications to Latin America (Costa et al 2016).…”

Section: Introductionmentioning

confidence: 99%

Short- and Long-Run Labor Market Adjustment to Import Competition

Blyde¹,

Busso²,

Park³

et al. 2023

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By exploiting spatial variation in import exposure arising from initial differences in industry specialization, we analyze how local labor markets in Mexico adjusted to increased Chinese-import competition over different time horizons. The initial adjustment to the shock took various forms: a decline in the number of wage employees, a substitution of wage employees with piece-rate or outsourced workers, and a substitution of formal employees with informal employees. The negative effects on employment were mainly associated with job destruction from exiting firms, particularly those that were small and medium-sized. During periods in which employment fell, the population that actively participated in the labor force fell. The negative short- and medium-run effects mostly disappeared after 20 years.

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Measuring the impact of the Chinese competition on the Mexican Labor Market: 1990–2013

Cited by 7 publications

References 9 publications

Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile

Chinese vs. US Trade in an Emerging Country: The Impact of Trade Openness in Chile

Austrian regions in the age of globalisation: Trade exposure, urban dynamics and structural change

Short- and Long-Run Labor Market Adjustment to Import Competition

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