• search hit 30 of 187
Back to Result List

Trade as an engine of creative destruction: Mexican experience with Chinese competition

  • 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.

Export metadata

Additional Services

Share in Twitter Search Google Scholar
Metadaten
Document Type:Article
Language:English
Author(s):Leonardo Iacovone, Ferdinand Rauch, L Alan Winters
Parent Title (English):Journal of International Economics
Publication year:2013
Publishing Institution:Hertie School
First Page:379
Last Page:392
Related URL:https://doi.org/10.1016/j.jinteco.2012.09.002
Release Date:2019/05/17
Volume:89
Issue:2
Licence of document (German):Metadaten / metadata
Verstanden ✔
Diese Webseite verwendet technisch erforderliche Session-Cookies. Durch die weitere Nutzung der Webseite stimmen Sie diesem zu. Unsere Datenschutzerklärung finden Sie hier.