Abstract
This paper investigates the role of timely delivery in international competition. Using a demand-side, industry -specific measure of time-sensitivity, we assess the effect of Chinese competition on the export performance of Eastern European transition economies into Western European (EU15) destination-product markets. Our empirical analysis relies on exploiting the increase of Chinese competition in global markets during the first decade of the 2000s. We find evidence of heterogeneous adjustments to Chinese competition among Eastern European exporters due to the differential importance of timely delivery across sectors (i.e. time-sensitivity). While we observe sizable real displacement effects, they appear to be at least 50 percent smaller for time -sensitive exports. Relying on firm-level customs data, we establish that this mechanism also plays a role for responses to Chinese competition within firms.
Original language | English |
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Article number | 103017 |
Number of pages | 14 |
Journal | Journal of Development Economics |
Volume | 161 |
DOIs | |
Publication status | Published - 1 Mar 2023 |
JEL classifications
- f14 - Empirical Studies of Trade
- f15 - Economic Integration
- f61 - Globalization: Microeconomic Impacts
- l25 - Firm Performance: Size, Diversification, and Scope
Keywords
- Delivery times
- Comparative advantage
- International competition
- China
- Europe
- WAGE IMPORT COMPETITION
- POLICY UNCERTAINTY
- TRADE
- CHINA
- EXPORTS
- LEVEL
- SPECIALIZATION
- INNOVATION
- COUNTRIES
- DYNAMICS