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The Rise of the East and the Far East: German Labor Markets and Trade Integration
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In this paper, the authors analyzed the effects of the unprecedented rise in trade between Germany and "the East" - China and Eastern Europe - in the period 1988-2008 on German local labor markets.Abstract:
"We analyze the effects of the unprecedented rise in trade between Germany and 'the East' - China and Eastern Europe - in the period 1988-2008 on German local labor markets. Using detailed administrative data, we exploit the cross-regional variation in initial industry structures and use trade flows of other high-income countries as instruments for regional import and export exposure. We find that the rise of 'the East' in the world economy caused substantial job losses in German regions specialized in import-competing industries, both in manufacturing and beyond. Regions specialized in export-oriented industries, however, experienced even stronger employment gains and lower unemployment. In the aggregate, we estimate that this trade integration has caused some 493,000 additional jobs in the economy and contributed to retaining the manufacturing sector in Germany. We also conduct our analysis at the individual worker level, and find that trade had a stabilizing overall effect on employment relationships." (Author's abstract, IAB-Doku) ((en))read more
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The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
TL;DR: This paper found that the adjustment in local labor markets is remarkably slow, with wages and labor-force participation rates remaining depressed and unemployment rates remaining elevated for at least a full decade after the China trade shock commences.
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From Sick Man of Europe to Economic Superstar: Germany's Resurgent Economy
TL;DR: In contrast to most of its European neighbors and the United States, Germany experienced almost no increase in unemployment during the Great Recession, despite a sharp decline in GDP in 2008 and 2009.
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Factor Immobility and Regional Impacts of Trade Liberalization Evidence on Poverty from India
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The trade origins of economic nationalism: import competition and voting behavior in Western Europe
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TL;DR: In this article, the impact of globalization on electoral outcomes in 15 Western European countries over 1988-2007 was investigated, using both official election results at the district level and individual level.
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Global Competition and Brexit
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TL;DR: The authors showed that support for the Leave option in the Brexit referendum was systematically higher in regions hit harder by economic globalization, and that the effect is driven by the displacement determined by globalization in the absence of effective compensation of its losers.
References
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Gravity with Gravitas: A Solution to the Border Puzzle
TL;DR: This article showed that the gravity model usually estimated does not correspond to the theory behind it and showed that national borders reduce trade between the US and Canada by about 44% while reducing trade among other industrialized countries by about 30%.
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Technology, Geography, and Trade
Jonathan Eaton,Samuel Kortum +1 more
TL;DR: This article developed a Ricardian trade model that incorporates realistic geographic features into general equilibrium and delivered simple structural equations for bilateral trade with parameters relating to absolute advantage, comparative advantage, and geographic barriers.
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The China Syndrome: Local Labor Market Effects of Import Competition in the United States
TL;DR: This paper analyzed the effect of Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial diffe cerence to US labor markets.
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Generalized reduced rank tests using the singular value decomposition
TL;DR: In this paper, the authors proposed a rank test based on matrix perturbation theory, which overcomes deficiencies of existing rank statistics, such as: a Kronecker covariance matrix for the canonical correlation rank statistic of Anderson [Annals of Mathematical Statistics (1951), 22, 327-351] sensitivity to the ordering of the variables for the LDU rank statistics of Cragg and Donald [1996, 91, 1301-1309] and Gill and Lewbel [Journal of the American Statistical Association (1992), 87, 766-776] a limiting
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Instrumental Variables Regression with Weak Instruments
TL;DR: In this article, the authors developed asymptotic distribution theory for instrumental variable regression when the partial correlation between the instruments and a single included endogenous variable is weak, here modeled as local to zero.
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