Crowding-Out or Co-Existence? The Competitive Position of EU Members and China in Global Merchandise Trade

40 Pages Posted: 30 Nov 2013

See all articles by Konstantins Benkovskis

Konstantins Benkovskis

Bank of Latvia; Stockholm School of Economics in Riga

Maria Antoinette Silgoner

Oesterreichische Nationalbank (OeNB)

Katharina Steiner

Oesterreichsiche Nationalbank (OeNB)

Julia Wörz

Oesterreichische Nationalbank (OeNB)

Date Written: November 14, 2013

Abstract

In this paper, we analyse export competition between individual EU Member States and China in third-country goods markets. We find that competitive pressure from China is strongest for small and peripheral EU members, especially for the Southern periphery, Ireland and Central, Eastern and South-eastern European EU members. While we find no hard evidence for "cut-throat" competition between China and EU countries, we see an increasing tendency of smaller EU exporters leaving markets that are increasingly served by China. We base our findings on traditional market share analysis, the exploration of intensive versus extensive margin export growth and on a Dynamic Trade Link Analysis. The latter, a newly developed tool, identifies different types of competitive pressure at the detailed product-destination market level. We use UN Comtrade data at the highest level of disaggregation (6-digit HS) for 75 world exporters and importers over the period 2000-2011.

Keywords: competitiveness, trade links, sectoral market shares, extensive margin, European Union, China

JEL Classification: F14, F15, O57

Suggested Citation

Benkovskis, Konstantins and Silgoner, Maria Antoinette and Steiner, Katharina and Wörz, Julia, Crowding-Out or Co-Existence? The Competitive Position of EU Members and China in Global Merchandise Trade (November 14, 2013). ECB Working Paper No. 1617. Available at SSRN: https://ssrn.com/abstract=2354238

Konstantins Benkovskis (Contact Author)

Bank of Latvia ( email )

Riga
Latvia

Stockholm School of Economics in Riga ( email )

Strelnieku iela 4a
Riga, LV 1010
Latvia

Maria Antoinette Silgoner

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3
1090 Vienna
Austria

Katharina Steiner

Oesterreichsiche Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna, A-1011
Austria

Julia Wörz

Oesterreichische Nationalbank (OeNB) ( email )

Otto-Wagner-Platz 3, PO Box 61
Vienna,
1010 Vienna, A-1011
Austria

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