The Rise of China and Labor Market Adjustments in Latin America

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

A Bibliometric Analysis of China–Latin America Economic and Political Relations

“…These scholars find evidence of a possible negative effect, conducting research in the second stage. The existing literature suggests that China has increased the global supply of manufacturing goods and global demand for commodities (Artuc, Lederman, & Rojas, 2015). Consequently, on the one hand, Latin America has lost market share to China (Gallagher et al, 2008; Jenkins et al, 2008) and faced increasing competitive pressures on the manufacturing sector (Mesquita Moreira, 2007; Sargent & Matthews, 2009).…”

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

“…On the one hand, increased trade can lead to increases in aggregate productivity that stem from lower productivity firms exiting the market and to technology diffusion effects that increase domestic industrial competitiveness. On the other hand, it can result in a contraction of domestic manufacturing output, manufacturing employment, wage differentials across sectors, and firm shrinkage or closure (Artuc, Lederman, & Rojas, 2015).…”

“…Threats pertaining to employment losses, the contraction of manufacturing output, plant closure, plant decline and downward pressure on wages are among the principal effects of drastic import competition pressures, as identified in the literature (Álvarez & Claro, 2009;Artuc et al, 2015;Bernard et al, 2006;Costa, Garred, & Pessoa, 2016;Topalova, 2007).…”

The Spread of Modern Industry to the Periphery since 1871

“…China's growth generated a negative trade shock for manufacturing exporters and a positive shock for mining and agricultural exporters. According to Artuç, Lederman, and Rojas (2015), the net effect of China's foreign trade from 2001 to 2011 was to decrease Mexico's net manufacturing exports by 11 per cent, while it reduced those of Peru by only 2.5 per cent. At the same time, Chinese foreign trade expansion increased mining net exports by only 8 per cent in Mexico, but by 25 per cent in Peru, and agricultural net exports by 2 per cent in both countries.…”