The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants

We study the impact of import competition on Mexican firm outcomes between 2003 and 2013 by exploiting variation in import penetration across industries. Focusing on the increase in import competition from China that Mexico experienced during this period, we find that the trade shock induced a decline in employment, sales, exports, and productivity. Importantly, the results show that the average impact hides significant heterogeneity effects, with smaller and less efficient plants experiencing the largest adjustments, while the most efficient plants exhibited relatively minor effects and, for some outcomes, no effects at all. The existence of heterogeneous impacts across establishments is consistent with other sets of findingsfor instance, that the productivity gap between small and large plants has been increasing over time and that the reallocation of resources has been productivity-enhancing, particularly in sectors that have experienced large-scale import penetration from China.

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Bibliographic Details
Main Author: Inter-American Development Bank
Other Authors: Juan S. Blyde
Language:English
Published: Inter-American Development Bank
Subjects:Productivity Growth, Bilateral Trade, Employment Rate, Workforce and Employment, Manufacturing Industry, Import, Manufacturing Export, Competitiveness, F14 - Empirical Studies of Trade, L25 - Firm Performance: Size Diversification and Scope, L60 - Industry Studies: Manufacturing: General, F61 - Microeconomic Impacts, import competition; manufacturing plants; productivity,
Online Access:http://dx.doi.org/10.18235/0002048
https://publications.iadb.org/en/heterogeneous-impacts-import-competition-mexican-manufacturing-plants
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spelling dig-bid-node-198552020-06-04T17:20:38ZThe Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants 2019-12-04T00:00:00+0000 http://dx.doi.org/10.18235/0002048 https://publications.iadb.org/en/heterogeneous-impacts-import-competition-mexican-manufacturing-plants Inter-American Development Bank Productivity Growth Bilateral Trade Employment Rate Workforce and Employment Manufacturing Industry Import Manufacturing Export Competitiveness F14 - Empirical Studies of Trade L25 - Firm Performance: Size Diversification and Scope L60 - Industry Studies: Manufacturing: General F61 - Microeconomic Impacts import competition; manufacturing plants; productivity We study the impact of import competition on Mexican firm outcomes between 2003 and 2013 by exploiting variation in import penetration across industries. Focusing on the increase in import competition from China that Mexico experienced during this period, we find that the trade shock induced a decline in employment, sales, exports, and productivity. Importantly, the results show that the average impact hides significant heterogeneity effects, with smaller and less efficient plants experiencing the largest adjustments, while the most efficient plants exhibited relatively minor effects and, for some outcomes, no effects at all. The existence of heterogeneous impacts across establishments is consistent with other sets of findingsfor instance, that the productivity gap between small and large plants has been increasing over time and that the reallocation of resources has been productivity-enhancing, particularly in sectors that have experienced large-scale import penetration from China. Inter-American Development Bank Juan S. Blyde Oscar Fentanes application/pdf IDB Publications China Mexico en
institution BID
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-bid
tag biblioteca
region America del Norte
libraryname Biblioteca Felipe Herrera del BID
language English
topic Productivity Growth
Bilateral Trade
Employment Rate
Workforce and Employment
Manufacturing Industry
Import
Manufacturing Export
Competitiveness
F14 - Empirical Studies of Trade
L25 - Firm Performance: Size Diversification and Scope
L60 - Industry Studies: Manufacturing: General
F61 - Microeconomic Impacts
import competition; manufacturing plants; productivity
Productivity Growth
Bilateral Trade
Employment Rate
Workforce and Employment
Manufacturing Industry
Import
Manufacturing Export
Competitiveness
F14 - Empirical Studies of Trade
L25 - Firm Performance: Size Diversification and Scope
L60 - Industry Studies: Manufacturing: General
F61 - Microeconomic Impacts
import competition; manufacturing plants; productivity
spellingShingle Productivity Growth
Bilateral Trade
Employment Rate
Workforce and Employment
Manufacturing Industry
Import
Manufacturing Export
Competitiveness
F14 - Empirical Studies of Trade
L25 - Firm Performance: Size Diversification and Scope
L60 - Industry Studies: Manufacturing: General
F61 - Microeconomic Impacts
import competition; manufacturing plants; productivity
Productivity Growth
Bilateral Trade
Employment Rate
Workforce and Employment
Manufacturing Industry
Import
Manufacturing Export
Competitiveness
F14 - Empirical Studies of Trade
L25 - Firm Performance: Size Diversification and Scope
L60 - Industry Studies: Manufacturing: General
F61 - Microeconomic Impacts
import competition; manufacturing plants; productivity
Inter-American Development Bank
The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants
description We study the impact of import competition on Mexican firm outcomes between 2003 and 2013 by exploiting variation in import penetration across industries. Focusing on the increase in import competition from China that Mexico experienced during this period, we find that the trade shock induced a decline in employment, sales, exports, and productivity. Importantly, the results show that the average impact hides significant heterogeneity effects, with smaller and less efficient plants experiencing the largest adjustments, while the most efficient plants exhibited relatively minor effects and, for some outcomes, no effects at all. The existence of heterogeneous impacts across establishments is consistent with other sets of findingsfor instance, that the productivity gap between small and large plants has been increasing over time and that the reallocation of resources has been productivity-enhancing, particularly in sectors that have experienced large-scale import penetration from China.
author2 Juan S. Blyde
author_facet Juan S. Blyde
Inter-American Development Bank
topic_facet Productivity Growth
Bilateral Trade
Employment Rate
Workforce and Employment
Manufacturing Industry
Import
Manufacturing Export
Competitiveness
F14 - Empirical Studies of Trade
L25 - Firm Performance: Size Diversification and Scope
L60 - Industry Studies: Manufacturing: General
F61 - Microeconomic Impacts
import competition; manufacturing plants; productivity
author Inter-American Development Bank
author_sort Inter-American Development Bank
title The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants
title_short The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants
title_full The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants
title_fullStr The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants
title_full_unstemmed The Heterogeneous Impacts of Import Competition on Mexican Manufacturing Plants
title_sort heterogeneous impacts of import competition on mexican manufacturing plants
publisher Inter-American Development Bank
url http://dx.doi.org/10.18235/0002048
https://publications.iadb.org/en/heterogeneous-impacts-import-competition-mexican-manufacturing-plants
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