206. The impact of Chinese import shock on Finnish regional labor markets

Veera Holappa 2021: The impact of Chinese import shock on Finnish regional labor markets. PTT working papers 206

Abstract: The rapid rise of Chinese exports over the past few decades has raised concerns about manufacturing jobs and internal labor market outcomes in high-income countries. I analyze the effect of rising Chinese import competition on Finnish regional manufacturing employment between 1995–2007. The analysis exploits the cross-regional variation in initial industry structures and uses Chinese imports to other high-income countries as an instrument for Chinese imports to Finland. I find that rising Chinese import competition has a negative effect on the share of manufacturing employment in Finnish sub-regions.

Keywords: Globalization, import competition, labor market, manufacturing employment

JEL: E24, F16, J23, L60, R23