Rising import shares from China: How does it affect the Norwegian economy?

Abstract

This paper evaluates the theoretical and empirical evidence on the question of whetherChinese import has an effect on the import level and inflation level in Norway. In terms ofempirical evidence a fixed effect estimation model is used to capture the effect of sectorgroups. The statistical program STATA is used.The empirical work indicates that "low- priced"-goods from China have a significant effect onboth the total value of import and the import price level. However, this effect is surprisinglysmall.