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The Impact of the China Shock on Employment Levels in Central Europe

Albers, Laura LU (2018) EKHS42 20181
Department of Economic History
Abstract
The coexisting rise of China and Central European economies in the early 2000s as respectively the “Factory of the World” and the “Factory of Europe” raises the question whether Central Europe has either benefited from, or been harmed by the rise of China. This thesis therefore investigates the impact of the China shock on employment levels in Central Europe between 2000 and 2014. Using the WIOD 2016, it follows the proposition by Feenstra and Sasahara (2017) and quantifies the “net employment effect” of the China shock in Central European countries. In doing so, it compares the (positive) job impact of increased exports to China with the (negative) job impact of increased Chinese import penetration. Results show that increased bilateral... (More)
The coexisting rise of China and Central European economies in the early 2000s as respectively the “Factory of the World” and the “Factory of Europe” raises the question whether Central Europe has either benefited from, or been harmed by the rise of China. This thesis therefore investigates the impact of the China shock on employment levels in Central Europe between 2000 and 2014. Using the WIOD 2016, it follows the proposition by Feenstra and Sasahara (2017) and quantifies the “net employment effect” of the China shock in Central European countries. In doing so, it compares the (positive) job impact of increased exports to China with the (negative) job impact of increased Chinese import penetration. Results show that increased bilateral trade with China between 2000 and 2014, has had a heterogeneous impact across Central European countries, where The Czech Republic and Slovakia see a net rise in employment levels, whereas Hungary, Poland and Slovenia experience a net demand reduction in jobs. Heterogeneity in net effects is on the export side caused by cross-country differences in export-openness and industry specialization, and on the import-side by differences in import-openness, initial domestic trade volumes and industry specialization. (Less)
Please use this url to cite or link to this publication:
author
Albers, Laura LU
supervisor
organization
course
EKHS42 20181
year
type
H2 - Master's Degree (Two Years)
subject
keywords
China Shock, Central Europe, employment, international trade
language
English
id
8951693
date added to LUP
2018-08-20 14:42:36
date last changed
2018-08-20 14:42:36
@misc{8951693,
  abstract     = {{The coexisting rise of China and Central European economies in the early 2000s as respectively the “Factory of the World” and the “Factory of Europe” raises the question whether Central Europe has either benefited from, or been harmed by the rise of China. This thesis therefore investigates the impact of the China shock on employment levels in Central Europe between 2000 and 2014. Using the WIOD 2016, it follows the proposition by Feenstra and Sasahara (2017) and quantifies the “net employment effect” of the China shock in Central European countries. In doing so, it compares the (positive) job impact of increased exports to China with the (negative) job impact of increased Chinese import penetration. Results show that increased bilateral trade with China between 2000 and 2014, has had a heterogeneous impact across Central European countries, where The Czech Republic and Slovakia see a net rise in employment levels, whereas Hungary, Poland and Slovenia experience a net demand reduction in jobs. Heterogeneity in net effects is on the export side caused by cross-country differences in export-openness and industry specialization, and on the import-side by differences in import-openness, initial domestic trade volumes and industry specialization.}},
  author       = {{Albers, Laura}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Impact of the China Shock on Employment Levels in Central Europe}},
  year         = {{2018}},
}