The effect of developing countries' competition on regional labour markets in Portugal

Tiago Pereira ()
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Tiago Pereira: Embaixada de Portugal em Bruxelas / Embassy of Portugal in Brussels

No 58, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: Portuguese trade with developing countries rose 564% in the last 20 years and China became in 2014 the 8th most important importer among all trade partners. At the same time, Portugal witnessed its manufacturing employment decreasing 34%. Using a sample of persons employed in enterprises between 2004 and 2012, I show whether regions more exposed to Chinese import competition face a larger decline in manufacturing employment. My results show that an increase of 1000 EUR in imports per worker throughout the period considered causes a decrease in the share of manufacturing employment in the working age population by approximately 0.12 percentage points or a decline of 0.431 log points. Moreover, my estimations did not show a clear conclusion about the impact of import competition on non-manufacturing employment and on whether people move to other regions in response to a trade shock, but they indicate a rise in unemployment.

Keywords: Import Competition; Local Labour Market; Portugal; China. (search for similar items in EconPapers)
JEL-codes: F14 F16 F66 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2016-03, Revised 2016-03
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_58.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0058

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