--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-42/the-china-effect-on-manufacturing-productivity-in-the-united-states-and-other-high-income-countries/" title: "The China Effect on Manufacturing Productivity in the United States and Other High-income Countries" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T08:01:58+00:00" date_modified: "2026-07-13T08:01:58+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2022" ipm_keyword: - "2000-2014" - "Arenagruppen" - "China" - "Eastern Europe" - "GVC" - "high-income countries" - "input-output" - "intermediates" - "manufacturing" - "productivity" ipm_research_theme: - "Sectoral and firm-level dynamics" - "Trade" ipm_country_focus: - "China" - "Europe" - "International" - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # The China Effect on Manufacturing Productivity in the United States and Other High-income Countries Canonical URL: https://csls.ca/ipm-archive/ipm-issue-42/the-china-effect-on-manufacturing-productivity-in-the-united-states-and-other-high-income-countries/ # The China Effect on Manufacturing Productivity in the United States and Other High-income Countries [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-42-2-Lind.pdf) Cite this article × Cite this article as: Lind, Daniel. 2022. “The China Effect on Manufacturing Productivity in the United States and Other High-income Countries.” International Productivity Monitor, No. 42 (Spring 2022): 33–62. https://www.csls.ca/ipm-archive/ipm-issue-42/the-china-effect-on-manufacturing-productivity-in-the-united-states-and-other-high-income-countries/ ## Author: - Daniel Lind Swedish Confederation of Professional Employees (TCO) ## IPM Issue 42 Spring 2022 pp. 33–62 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Climate Change and Productivity — An Exploration Dirk Pilat Fall 2024 | IPM Issue 47 | pp. 54–86](https://csls.ca/ipm-archive/ipm-issue-47/climate-change-and-productivity-an-exploration/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn From a macroeconomic perspective and using input-output techniques, this article investigates to what extent, and how, the growing use of Chinese intermediates has contributed to the labour productivity growth within the manufacturing production processes of 22 high-income countries. The main result — based on almost 400 global value chains during the period 2000-2014 — is that this productivity effect is significant and economically relevant. This is also the case for the United States. The effect holds before and after the financial crisis, is robust to different specifications, and is identified in almost all production processes. Three mechanisms behind the identified pattern are — tentatively — identified: reduced employment, reduced prices, and productivity enhancing functional specialization. However, China is not special: the absolute productivity effect of the growing use of Eastern European intermediates seems to be even larger. Finally, China and Eastern Europe are special in relation to the high-income countries: growing intra-trade of intermediates among the high-income countries is associated with weaker productivity growth. D’un point de vue macroéconomique et à l’aide de techniques d’entrées-sorties, cet article examine dans quelle mesure et comment l’utilisation croissante d’intrants intermédiaires chinois a contribué à la croissance de la productivité du travail au sein des processus de production manufacturière de 22 pays à revenu élevé. Le principal résultat — fondé sur près de 400 chaînes de valeur mondiales au cours de la période 2000-2014 — est que cet effet de productivité est significatif et économiquement pertinent, y compris pour les États-Unis. L’effet est robuste avant et après la crise financière et est identifié dans presque tous les processus de production. Trois mécanismes sous-jacents sont — provisoirement — identifiés : la réduction de l’emploi, la réduction des prix et la spécialisation fonctionnelle améliorant la productivité. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-42-2-Lind.pdf)