Import competition from China and Eastern Europe: Evidence from the Norwegian manufacturing sector

In this thesis I analyse the extent to which the decline in employment in the Norwegian manufacturing sector from 2000 to 2011 can be explained by increasing import competition from China and Eastern Europe. I do so by conducting a panel data analysis that includes cross-sectional units of 17 two-digit industries classified by SIC 2002. I use a first-difference design and apply an IV strategy to control for potential endogenous variables. I find a negative effect of import competition from China and Eastern Europe. I find evidence of negative wage effects.