The Economist:
Free Trade: Coming and going
1 October 2016
In other rich countries, regions or industries with heavy exposure to Chinese imports also suffered material losses in factory jobs. A study of Spain's jobs market by Vicente Donoso, of the Complutense University of Madrid, and others found that provinces with the greatest exposure to Chinese imports saw the largest falls in the share of manufacturing employment between 1999 and 2007, but this was compensated for by an increase in non-factory jobs. Research in Norway, though, found that the main effect was to raise unemployment. Joao Paulo Pessoa of the London School of Economics found that British workers in industries exposed to high levels of import competition from China spent more time out of work than those in other industries. A wide-ranging study of the effect on Germany of more trade with China and eastern Europe in the two decades after 1988 concluded that industries competing with imports suffered job losses, but these were outweighed by job gains in regions focused on export industries. Those gains were due almost entirely to trade with eastern Europe, not China.
This article was published in The Economist on October 1, 2016
Link to article here
Related publications
China shock: the impact on trade and incomes, Joao Paulo Pessoa. Article in CentrePiece Volume 21, Volume 2, Summer 2016
This article summarises International Competition and Labor Market Adjustment, Joao Paulo Pessoa, Centre for Economic Performance Discussion Paper No. 1411, March 2016
Related links
Joao Paulo Pessoa is a research associate in CEP's growth programme
Growth Programme webpage