The impact of Chinese competition on third markets: An analysis by region and technological category

Abstract

Abstract This article seeks, through the use of a gravity model, to verify if in the 2000‐2009 years Chinese exports have displaced exports from other countries in third markets. The contribution of this article is to provide an overview of Chinese competition, covering different regions and technology categories in a comparative way. The evidence shows that the effect of Chinese exports on global exports is mainly negative. The medium technology manufacturing sector is the segment most affected by Chinese competition. The results also indicate that developing economies are experiencing the most negative effect of Chinese competition, especially the emerging Asian countries.