The Trade Impact of China on EMU: Is It Even Across Members?
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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. 2012/221
Subject:
Competition Exports Financial markets International trade Labor Technology Trade deficits Wages
Frequency:
QUARTERLY
English
Publication Date:
September 1, 2012
ISBN/ISSN:
9781475510287/1018-5941
Stock No:
WPIEA2012221
Pages:
25
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