@article{CardotIacovonePierolaetal., author = {Cardot, Olivier and Iacovone, Leonardo and Pierola, Martha Denisse and Rauch, Ferdinand}, title = {Success and failure of African exporters}, series = {Journal of Development Economics}, volume = {101}, journal = {Journal of Development Economics}, doi = {10.1016/j.jdeveco.2012.12.004}, pages = {284 -- 296}, abstract = {Using a new dataset with transaction-level export data from four African countries (Malawi, Mali, Senegal and Tanzania), this paper explores the determinants of success upon entry into export markets, defined as survival beyond the first year at the firm-product-destination level. We find that the probability of success rises with the number of same-country firms exporting the same product to the same destination, suggesting the existence of cross-firm externalities. We explore several conjectures on the determinants of these externalities and provide evidence suggestive of information spillovers, possibly mediated through the banking system.}, language = {en} } @article{IacovoneRauchWinters, author = {Iacovone, Leonardo and Rauch, Ferdinand and Winters, L Alan}, title = {Trade as an engine of creative destruction: Mexican experience with Chinese competition}, series = {Journal of International Economics}, volume = {89}, journal = {Journal of International Economics}, number = {2}, pages = {379 -- 392}, abstract = {This paper exploits the surge in Chinese exports from 1994 to 2004 to evaluate the effects of a competition shock from a low wage competitor for producers in an important middle-income country, Mexico. We find that this shock causes selection and reallocation at both firm and product levels and that its impact is highly heterogeneous at the intensive and extensive margins. Sales of smaller plants and more marginal products are compressed and are more likely to cease, whereas those of larger plants and core products seem relatively impervious to the shock. This implies a reallocation in terms of market shares within firms and between firms. We also show that the impact of expanded access to cheaper Chinese intermediate inputs has a similar effect, with larger plants benefiting more from the availability of cheaper imported inputs.}, language = {en} }