The impact of China’s economic rise on the Czech Republic’s motor vehicle exports

Authors

KONČIKOVÁ Veronika

Year of publication 2014
Type Article in Proceedings
Conference Proceedings of the 32nd International Conference Mathematical Methods in Economics
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web http://mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf
Field Economy
Keywords Trade economic performance automotive industry exports China Czech Republic
Description The surge of China as a global exporter raised numerous questions about how it might influence other economies. At first, literature focused on developing economies, but the shift of China’s export structure towards more sophisticated products might bring a competition effect even for the developed countries. In this paper we examine whether Czech Republic’s most important export commodity – the motor vehicles - is influenced by China’s growing importance in the global trade. Using the gravity models we examine whether Czech car industry suffers from Chinese competition in its export markets. The paper is organized as follows: the first chapter briefly introduces the main development in the China’s export structure and provides a brief literature review of this topic, the second chapter describes the methodology and model used in our analysis and the following chapter presents our main findings. The conclusion and possibilities for further research in this area are offered at the end.
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