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Chinese Manufacturing Import Penetration and Firm Performance: Evidence from Belt and Road Initiative Countries
A discussion on Chinese manufacturing
Start time:
November 14, 2024 @ 6:00 pm - 7:30 pm
WAT
Location:
Online
Type:
Lecture

Description
In this paper, Danilo Spinola (Chairman) YSI community board examines the firm-level effects of Chinese manufacturing import penetration on the performance of manufacturing firms in Belt and Road Initiative (BRI) countries. We construct a dataset of 59 BRI member countries by combining firm-level data from the World Bank’s Enterprise Survey with industry-level data from the United Nations Commodity Trade (Comtrade) database from 2011 to 2020. Employing a multi-level modelling approach, our findings reveal that Chinese manufacturing imports exert a considerable adverse effect on productivity growth and employment, and a robust and significant positive effect on the export capabilities of manufacturing firms. The adverse effects on performance are significantly moderated by firms that pursue innovation and engage in foreign licensing. These findings are significant in middle-income countries and small and medium-sized enterprises (SMEs) within BRI countries. Based on these findings, we argue that the importation of manufactured goods from China results in a crowding-out effect on the productive capacities of firms within the Belt and Road Initiative (BRI) countries on the one hand and a catalytic effect on the internationalisation of firms on the other hand. These dual outcomes may underscore China’s global value chains (GVCs) position-seeking strategy.
One of the core ideas is to understand China’s growing relevance to globalization and localize the knowledge for country specific policies.
Hosted by Working Group(s):
Organizers
Attendees
Tom Hancock
Nuoya Chen
Mohd Nayyer Rahman
lorenzo cassi
Yanis Bekhti
Guido Weksler
Tarlan Ahmadov
SANDEEP KUMAR
Jana Rué Glutting
Mariantonietta Ferrante
Ezequiel Henrique
Nicola Grace Wills
mayuri hazarika
DN GUPTA
Yongyuan Huang
Haseem Ajaz
Facundo Malvicino
Swathysree S S
Arthur Moreira
Oyama Tyhalibongo
Jessie Xu
Hugo C. Iasco-Pereira
Nicolò Geri
Ekmel Sayil
Brian Waiguru
Mohammed Nabil
Cassiano Schwantes Correa
Mariano Ignacio Treacy
Danilo Spinola
AKOME OMOFUMA