How do free trade agreements change import prices? : firm-level evidence from China's imports from ASEAN

The literature has revealed the positive impacts of free trade agreements (FTAs) on export prices by employing product-level trade data. This paper empirically examines the impacts of FTAs on import prices at the firm level. We focus on firm-level imports in China from ASEAN countries by employing China’s firm-product-level trade data. As a result, controlling for firm characteristics and product characteristics, we could not find significantly positive impacts of an FTA’s entry into force on import prices of FTA eligible products. Instead, we found a significant increase in import quantities of FTA eligible products. Thus, at the firm level, the gains from FTAs for exporters may be the increase in export quantities rather than the rise in export prices.

Exposure to Chinese imports andlocal labor market outcomes. An Analysis for Spanish provinces

In the period 1999-2007 Spanish imports from China multiplied by six, making that Asian country the fourth largest supplier to the Spanish economy. In this paper, we analyse 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. Our 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.