Tuesday, September 08, 2009
[IWS] TRADE AS ENGINE OF CREATIVE DESTRUCTION: THE MEXICAN EXPERIENCE WITH CHINESE COMPETITION [August 2009]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Forum for Research on Empirical International Trade (FREIT)
Trade as Engine of Creative Destruction: The Mexican experience with Chinese competition
PRELIMINARY AND INCOMPLETE - PLEASE DO NOT CITE WITHOUT PERMISSION
Leonardo Iacovone
Ferdinand Rauch
Alan L. Winters§
First Version: July 31, 2009
Current Version: August 1, 2009
http://www.freit.org/WorkingPapers/Papers/FirmLevelTrade/FREIT087.pdf
[full-text, 35 pages]
Abstract
This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment
to evaluate the effects of an exogenous shock from competition on Mexican producers. The
effect of this competition operates a selection at both firm and product-level as its effects
are highly heterogenous both on the intensive and extensive margins. Sales of smaller
plants and more marginal products are compressed and are more likely to exit, while
larger plants and products exhibit an opposite effect. Similar results hold both on the
domestic market as well as for competition facing Mexican exporters on a third market
(i.e. US).
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Forum for Research on Empirical International Trade (FREIT)
Trade as Engine of Creative Destruction: The Mexican experience with Chinese competition
PRELIMINARY AND INCOMPLETE - PLEASE DO NOT CITE WITHOUT PERMISSION
Leonardo Iacovone
Ferdinand Rauch
Alan L. Winters§
First Version: July 31, 2009
Current Version: August 1, 2009
http://www.freit.org/WorkingPapers/Papers/FirmLevelTrade/FREIT087.pdf
[full-text, 35 pages]
Abstract
This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment
to evaluate the effects of an exogenous shock from competition on Mexican producers. The
effect of this competition operates a selection at both firm and product-level as its effects
are highly heterogenous both on the intensive and extensive margins. Sales of smaller
plants and more marginal products are compressed and are more likely to exit, while
larger plants and products exhibit an opposite effect. Similar results hold both on the
domestic market as well as for competition facing Mexican exporters on a third market
(i.e. US).
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 2:08 PM
