Abstract

This paper analyzes firms' responses to the import competition from China on their domestic and export markets conditional on their employment of immigrant workers. We use a sample of French manufacturing firms from 1997 to 2009. We find a negative and significant impact of both the domestic and the foreign Chinese import competition on firms' 5-year growth in total sales. In addition, we find that immigrant workers mitigate firms' reactions to the import competition from China.

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