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Do Differences in the Exposure to Chinese Imports Lead to Differences in Local Labour Market Outcomes? An Analysis for Spanish Provinces

Donoso V., Martín V. and Minondo A. Do differences in the exposure to Chinese imports lead to differences in local labour market outcomes? An analysis for Spanish provinces, Regional Studies. In the period 1999–2007 Spanish imports from China multiplied six times, making that Asian country the fourth largest supplier to the Spanish economy. This paper analyses whether this massive increase in imports impacted on the labour markets of Spanish provinces to differing degrees, due to differences in their initial productive specialization. The results show that Spanish provinces with a higher exposure to Chinese imports experienced larger drops in manufacturing employment as a share of the working-age population. However, this reduction was compensated for by increases in non-manufacturing employment.