Chinese import competition, offshoring and servitization.

We study how domestic firms adapt to increased import competition from China. Using a Danish employer‐employee matched dataset covering firms over the 1995–2007 period, we find that import competition significantly increases manufacturing firms' expansion of their business activities in the service...

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Publicado en:Economic Inquiry Vol. 60; no. 2; pp. 901 - 929
Autores principales: Gu, Grace, Malik, Samreen, Pozzoli, Dario, Rocha, Vera
Formato: Artículo
Publicado: Wiley-Blackwell Apr2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Chinese import competition, offshoring and servitization.
      aug:
        au:
          Gu, Grace
          Malik, Samreen
          Pozzoli, Dario
          Rocha, Vera
        affil:
          University of California Santa Cruz, Santa Cruz California,, USA
          New York University AD, New York New York,, USA
          Department of Economics, Copenhagen Business School, Frederiksberg, Denmark
          Copenhagen Business School, Frederiksberg, Denmark
      su:
        China
        Service industries
        Offshore outsourcing
        Business process outsourcing
        Imports
        Market exit
      sug:
        subj:
          Service industries
          China
          Service Establishment Equipment and Supplies Merchant Wholesalers
          Offshore outsourcing
          Business process outsourcing
          Imports
          Market exit
      keyword:
        foreign competition
        offshoring
        servitization
        foreign competition
        offshoring
        servitization
      ab: We study how domestic firms adapt to increased import competition from China. Using a Danish employer‐employee matched dataset covering firms over the 1995–2007 period, we find that import competition significantly increases manufacturing firms' expansion of their business activities in the service industry (partial servitization); their probability of offshoring production activities abroad and of exiting the market. Import competition, however, does not induce firms to cease all of their involvement in manufacturing production by completely switching into service sector (complete servitization). These findings are confirmed using various robustness tests as well as an analogous analysis of a Portuguese employer‐employee matched dataset.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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