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Did trade crisis affect different exporters differently? Case of Mexico

Rahul Giri, Enrique Seira () and Kensuke Teshima ()
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Kensuke Teshima: Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM)

No 1304, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: How did small exporters fare relative to large exporters during the 2008-09 crisis? Examining the performance of Mexican exporters reveals that crisis did not make smaller exporters more likely to exit, growless, or expand their product line less. Workhorse models of trade, in response to an aggregate demand or credit shock, would predict the opposite. The same models, however, are consistent with the data before and after the crisis: within industry, (i) firm exit rate is decreasing in size; (ii) conditional on survival, export growth is largely decreasing in size, (iii) net product addition is increasing in size.

Keywords: firm level trade; firm size; crisis; margins of trade adjustment (search for similar items in EconPapers)
JEL-codes: F11 F15 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2013
New Economics Papers: this item is included in nep-bec and nep-int
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