@article{2a3dea50725a450d80fabab1c70a07cb,
title = "Chinese import competition, offshoring and servitization",
abstract = "We study how domestic firms adapt to increased import competition from China. Using a Danish employer-employee matched dataset covering firms over the 1995–2007 period, we find that import competition significantly increases manufacturing firms' expansion of their business activities in the service industry (partial servitization); their probability of offshoring production activities abroad and of exiting the market. Import competition, however, does not induce firms to cease all of their involvement in manufacturing production by completely switching into service sector (complete servitization). These findings are confirmed using various robustness tests as well as an analogous analysis of a Portuguese employer-employee matched dataset.",
keywords = "foreign competition, offshoring, servitization",
author = "Grace Gu and Samreen Malik and Dario Pozzoli and Vera Rocha",
note = "Funding Information: We are extremely grateful to Stephen Miller and to the seminar participants at University California Santa Cruz, Copenhagen Business School and the WEAI 2020 conference for the helpful comments and suggestions. We thank the data manager at Copenhagen Business School for granting access to the Danish registry data. Funding provided by the Danish Council for Independent Research in Social Sciences, Grant no. DFF-8019-00019B, is gratefully acknowledged. The usual disclaimer applies. Funding Information: We are extremely grateful to Stephen Miller and to the seminar participants at University California Santa Cruz, Copenhagen Business School and the WEAI 2020 conference for the helpful comments and suggestions. We thank the data manager at Copenhagen Business School for granting access to the Danish registry data. Funding provided by the Danish Council for Independent Research in Social Sciences, Grant no. DFF‐8019‐00019B, is gratefully acknowledged. The usual disclaimer applies. 1 Publisher Copyright: {\textcopyright} 2021 Western Economic Association International.",
year = "2022",
month = apr,
doi = "10.1111/ecin.13055",
language = "English (US)",
volume = "60",
pages = "901--928",
journal = "Economic Inquiry",
issn = "0095-2583",
publisher = "Wiley-Blackwell",
number = "2",
}