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Effect of Increasing Import Competition from China on Manufacturing Employment: Evidence from Nordic Countries

Ranjkeshan, Aida LU (2022) NEKN01 20221
Department of Economics
Abstract
Over the last decades, the adverse effects of increased international trade and the rapid rate of globalization have been widely discussed - with labor markets in focus. This study examines the effect of increasing imports from China on manufacturing employment in Nordic countries. I analyze the effect of rising Chinese import competition over the years 1995 to 2020 by employing a two-stage least squares estimation method. The results found indicate that the effect of increasing import exposure from China has no statistically significant effect on Nordic countries’ manufacturing employment growth in the past decade. Although, it is found that the import penetration ratio, accounting for Chinese imports, has a small positive effect on the... (More)
Over the last decades, the adverse effects of increased international trade and the rapid rate of globalization have been widely discussed - with labor markets in focus. This study examines the effect of increasing imports from China on manufacturing employment in Nordic countries. I analyze the effect of rising Chinese import competition over the years 1995 to 2020 by employing a two-stage least squares estimation method. The results found indicate that the effect of increasing import exposure from China has no statistically significant effect on Nordic countries’ manufacturing employment growth in the past decade. Although, it is found that the import penetration ratio, accounting for Chinese imports, has a small positive effect on the growth of manufacturing employment when testing for the whole sample. When testing for the years between 2000 and 2010, capturing the early years following China’s entry into the WTO, I find weakly statistically significant results implying that increased import exposure from China had a negative effect on the manufacturing employment growth. (Less)
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author
Ranjkeshan, Aida LU
supervisor
organization
course
NEKN01 20221
year
type
H1 - Master's Degree (One Year)
subject
keywords
International Trade, Import Competition, Labor Markets, Employment, Manufacturing Sector, Nordic Countries, China
language
English
id
9085229
date added to LUP
2022-10-10 09:24:01
date last changed
2022-10-10 09:24:01
@misc{9085229,
  abstract     = {{Over the last decades, the adverse effects of increased international trade and the rapid rate of globalization have been widely discussed - with labor markets in focus. This study examines the effect of increasing imports from China on manufacturing employment in Nordic countries. I analyze the effect of rising Chinese import competition over the years 1995 to 2020 by employing a two-stage least squares estimation method. The results found indicate that the effect of increasing import exposure from China has no statistically significant effect on Nordic countries’ manufacturing employment growth in the past decade. Although, it is found that the import penetration ratio, accounting for Chinese imports, has a small positive effect on the growth of manufacturing employment when testing for the whole sample. When testing for the years between 2000 and 2010, capturing the early years following China’s entry into the WTO, I find weakly statistically significant results implying that increased import exposure from China had a negative effect on the manufacturing employment growth.}},
  author       = {{Ranjkeshan, Aida}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Effect of Increasing Import Competition from China on Manufacturing Employment: Evidence from Nordic Countries}},
  year         = {{2022}},
}