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Did trade crisis affect different exporters differently? Case of Mexico

Author

Listed:
  • Rahul Giri

    () (Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM))

  • Enrique Seira

    () (Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM))

  • Kensuke Teshima

    () (Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (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.

Suggested Citation

  • Rahul Giri & Enrique Seira & Kensuke Teshima, 2013. "Did trade crisis affect different exporters differently? Case of Mexico," Working Papers 1304, Centro de Investigacion Economica, ITAM.
  • Handle: RePEc:cie:wpaper:1304
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    File URL: http://ftp.itam.mx/pub/academico/inves/giri/13-04.pdf
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    References listed on IDEAS

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    Cited by:

    1. Becker, Julia-Maria, 2014. "The Impact of the Crisis of 2008 on Women`s and Men`s Income in Mexico," MPRA Paper 57964, University Library of Munich, Germany.
    2. Montufar Helu Jiménez, Alejandro, 2013. "Reformas en la producción y distribución eléctrica y su relación con el sector manufacturero: el impacto de la sustitución de Luz y Fuerza del Centro por la Comisión Federal de Electricidad," MPRA Paper 49507, University Library of Munich, Germany.

    More about this item

    Keywords

    firm level trade; firm size; crisis; margins of trade adjustment;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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