The Trade Impact of China on EMU: Is It Even Across Members?

Author/Editor: Mikkelsen, Uffe ; Pérez Ruiz, Esther
Publication Date: September 01, 2012
Electronic Access: Free Full text (PDF file size is 1,390KB).
Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper investigates the asymmetries in trade spillovers from sector-specific technology shocks in China to selected euro area countries. We use a Ricardian-gravity trade model to estimate sectoral competitiveness in individual euro area countries. Simulations on the impact of productivity shocks in Chinese textiles and machinery suggest that the required adjustment in wages, prices, and factor re-allocation is widely heterogenous across euro area countries on accounts of their different specialization patterns. This raises the question of the distribution of gains and losses from external trade shocks.
Series: Working Paper No. 12/221
Subject(s): China | Economic models | Europe | European Economic and Monetary Union | External shocks | Global competitiveness | International trade | Manufacturing sector | Productivity | Textile industry | China, People's Republic of

Author's Keyword(s): International trade | China | European Monetary Union | Sectoral specialization.
Publication Date: September 01, 2012
Format: Paper
Stock No: WPIEA2012221 Pages: 24
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to