Chinese Import Competition, Offshoring and Servitization

Grace Gu, Samreen Malik, Dario Pozzoli, Vera Rocha

Research output: Working paperResearchpeer-review

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Abstract

This paper examines whether Chinese import competition increases the propensity for firms to offshore production or to cease any involvement in production by switching completely and permanently out of the manufacturing sector (servitization). Using a Danish employer-employee matched dataset covering a large sample of manufacturing firms over the 1995-2012 period, we find that import competition from China significantly increases offshoring but does not induce servitization. These findings are confirmed using various robustness tests as well as an analogous analysis of a Portuguese employer-employee matched dataset.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherCopenhagen Business School [wp]
Number of pages39
Publication statusPublished - 2021
SeriesWorking Paper / Department of Economics. Copenhagen Business School
Number05-2021

Keywords

  • Foreign competition
  • Offshoring
  • Servitization

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