IDEAS home Printed from https://ideas.repec.org/p/rif/briefs/83.html
   My bibliography  Save this paper

Chinese Export Competition Affects the Exports of Firms from Finland

Author

Listed:
  • Nilsson Hakkala, Katariina

Abstract

China’s export competition has decreased the total export value of Finnish firms’ products, primarily through price cuts. Firm-level analysis shows that the export competition with China leads to substantial price cuts to retain market shares, especially for homogeneous products. Price cuts to maintain market shares as competition intensifies do not seem to be as relevant for differentiated (heterogeneous) products. On the other hand, firms respond to the increased level of Chinese export competition by dropping their marginal product exports. The study highlights the importance of export competition with China for developed countries, as China’s production climbs higher on the value chain ladder. It is important that policy measures will focus on supporting the growth of production and export of specified products. The continuing support of R&D investments in both companies and in public sector is one of the most important policy actions that will generate new competitive high-skill export products.

Suggested Citation

  • Nilsson Hakkala, Katariina, 2020. "Chinese Export Competition Affects the Exports of Firms from Finland," ETLA Brief 83, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:briefs:83
    as

    Download full text from publisher

    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-83.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Trade flows; Export competition; Firm-level; Product mix; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:briefs:83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.