Abstract

ABSTRACTThis paper aims, through the use of a gravity model and the disaggregated trade data over the period 2006–2017, to investigate whether China’s growing exports to Central and Eastern European countries, crowd out exports from the EU15. The analysis shows the intensification of the Sino-EU15 export competition, especially in sectors of electronics, machinery, and textiles and furniture. The econometric analysis shows a positive correlation between China’s exports and exports from the EU15 when observing total trade, as well as in sectors of machinery and electronics. By contrast, crowding out is detected in the sector of textile and furniture.

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