STRUCTURAL DEVELOPMENTS IN THE MEXICAN LIVESTOCK SUBSECTOR: THE CASE OF FEEDER CATTLE AND BEEF PRODUCTION

Livestock Production/Industries,

Is Exporting a Source of Productivity Spillovers?

This paper investigates whether exporting generates positive productivity spillover effects on other plants operating in the same industry and whether exporting affects productivity of plants in vertically related industries. Using plant-level data from Chile we find that exporters improve productivity of their local suppliers but not of plants that purchase intermediate inputs from them. We also find evidence of horizontal spillovers from exporting. Exporting by foreign-owned plants generates positive spillovers in all directions: to their suppliers, customers, and to other plants in the same industry. Domestic exporters increase productivity of their suppliers and, to a lesser extent, that of plants in the same sector.exporting, spillovers, productivity, vertical linkages, Chile

Trade Liberalization and Industry Dynamics: A Difference in Difference Approach

Recent models of trade with firm heterogeneity predict that opening to trade reduces the number of firms, increases the average size of firms, and decreases firms’ markups. This paper uses a large dataset for 28 manufacturing industries and 46 countries to test these predictions. The econometric analysis based on the treatment effects literature shows that on average, trade liberalizations do not decrease the number of firms nor increase the average size of firms. Markups appear to decrease during the three years after the liberalization. We also find that the number of firms and the average size of firms increase in comparative advantage industries.Trade Liberalization, Industry Dynamics, Treatment Effects

Entry and Exit in International Markets: Evidence from Chilean Data

Several studies examine the patterns and determinants of entry and exit in manufacturing industries. Not much work exists on entry and exit in international markets. This paper uses Chilean data to analyze the determinants of entry and exit in and out of export markets. We find that entry and exit rates differ across industries; vary over time; and are positively correlated. The econometric analysis shows that within-industry heterogeneity, measured by differences in productivity or other firm characteristics, has a significant effect on plant turnover in international markets. Our findings reveal that trade costs, factor intensities, and fluctuations in the real exchange rate play a minor role explaining entry and exit. This last result is consistent with hysteresis in international markets.Treatment Entry, Exit, International Markets, Chile

Cyclical differences emerge in border city economies

Business cycles ; Maquiladora ; North American Free Trade Agreement