The “China Effect” on EU Exports to OECD Markets: A Focus on Italy

  • Giorgia Giovannetti
  • Marco Sanfilippo
  • Margherita Velucchi
Chapter

Abstract

This paper analyzes the indirect impact of China on the export performance of major European countries (Italy, France, Germany and Spain) in their main outlet markets (the OECD countries). Given their specialization in manufacturing, these EU countries are likely to be vulnerable to Chinese competition, especially in consumer goods. The heterogeneity of the production (and export) structures of the other EU countries makes Italy the most vulnerable, with its export concentration in the traditional sectors. Using data for the period 1995-2009, we estimate the possible displacement effect at sector level, finding considerable variation in EU countries exposure to Chinese competition, with a very strong China effect indeed in some sectors. This applies especially in the period since Chinas entry into the WTO and with respect to Italy, both in traditional and in more capital-intensive sectors.

Notes

Acknowledgements

We are grateful for the comments of the participants at the workshop “The Chinese Economy” hosted by the Venice International University in November 2010, at a seminar at the Vienna Institute for International Economic Studies (Wiiw) in June 2011, at the annual conference of the Chinese Economic Association in Dublin in July 2011, and at the European Economic Association Meeting in Oslo in August 2011 and for those of an anonymous referee. Giorgia Giovannetti thanks FIRB 2007 for financial support.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  • Giorgia Giovannetti
    • 1
  • Marco Sanfilippo
    • 2
  • Margherita Velucchi
    • 1
  1. 1.European University of RomeRomeItaly
  2. 2.European University InstituteFlorenceItaly

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