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The Impacts of Trade Flows with China on the Manufacturing Employment in Sweden
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The purpose of this thesis was to investigate how the manufacturing employment in Sweden has been affected by enhanced trade flows with China. By using local labor markets as the unit of analysis, the instrumental variable analysis indicate that increased import competition has reduced the manufacturing employment while enhanced export opportunities has increased it. By using the empirical changes in these measures it was estimated that the net effect on manufacturing employment due to trade with China was a decrease of 0.034 percentage points from 1995-2007. However, the estimated coefficients turned insignificant when time-fixed effects was included. This implies that it cannot be excluded that the observed decline in manufacturing employment has been the result of a general trend across local labor markets. These results should therefore be interpreted with caution. Furthermore, it was analysed how differently skilled workers has been affected due to trade with China. It was found that the share of workers without college education has been significantly reduced due to increased import from China. This finding was robust to both industry- and time fixed-effects.

Place, publisher, year, edition, pages
2017.
Keywords [en]
Manufacturing employment, Import competition, Export opportunities, Local labor markets, Instrumental variables, Sweden, China, Low-skilled workers
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-326044OAI: oai:DiVA.org:uu-326044DiVA, id: diva2:1118307
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Available from: 2017-08-18 Created: 2017-06-30 Last updated: 2017-08-18Bibliographically approved

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CiteExportLink to record
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Citation style
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