Common Contracts

Abstract

April 30th, 2021

• Filed
  April 30th, 2021

The rapid rise of Chinese trade in the world today warrants an examination of its effects on firms’ performance. Using firm level data from Thailand and the Philippines, this study analyses the impact of an increase in Chinese import shares on the firms’ profitability, sales, costs, innovative activity and labour productivity. The results revealed a negative impact on the firms’ profitability, sales and costs. Additionally, labour productivity in terms of added value per cost of worker increased with higher import share. The impact on manufacturing firms alone was similar, except for a positive impact on productivity in terms of both added value and sales.