Trade as an Engine of Creative Destruction: Mexican Experience with Chinese Competition

This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment to evaluate the effects of a unilateral low wage trade and competition shock to producers in Mexico. We find that this shock causes selection at both firm and product levels as its impact is highly heterogeneous both on the intensive and extensive margins. Sales of smaller plants and more marginal products are compressed and are more likely to cease, while larger plants and products exhibit an opposite response. Similar results hold both for the domestic market and for competition facing Mexican exporters in a third market (i.e. the United States).China, Mexico, multi-product-firm, trade shock

Trade as an Engine of Creative Destruction Mexico experience with Chinese competition

This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment to evaluate the effects of a unilateral low wage trade and competition shock to producers in Mexico. We find that this shock causes selection at both firm and product levels as its impact is highly heterogeneous both on the intensive and extensive margins. Sales of smaller plants and more marginal products are compressed and are more likely to cease, while larger plants and products exhibit an opposite response. Similar results hold both for the domestic market and for competition facing Mexican exporters in a third market (i.e. the United States).China, Mexico, multi-product-firm, trade shock

Access to Finance in Sub-Saharan Africa: Is There a Gender Gap?

This paper assesses whether there is a gender gap in the use of financial services by businesses and individuals in Sub - Saharan Africa. W e show the existence of an unconditional gender gap , as the absolute use of financial services is higher for males than fem ales . However, when key observable characteristics of the enterprises or individuals are taken into account the gender gap disappear s . In the case of enterprises, we explain our finding with differences in key characteristics and a poenti a l selection bias – females owned ones are smaller, younger and less likely to run sole proprietorships than men, furthermore these are more likely to innovate and more prevalent in sectors that tend to rely less on access to external finance . In the case of individuals, the lower use of formal financial services by women can be explained by gender gaps in other dimensions related to the use of financial services, such as their lower level of income and educ ation, and by their household and employment status. E xploring the reasons for not applying or being unba n ked shows that traditional bank barrier s such as higher interest rates, lack of formal income or job are more binding for females than for males . This suggests that , conditional o n their observable characteristics, females do not have inherently lower demand nor that there is taste - based discrimination

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

This paper exploits the surge in Chinese exports from 1994 to 2004 as a natural experiment to evaluate the effects of a unilateral low wage trade and competition shock to producers in Mexico. We find that this shock causes selection at both firm and product levels as its impact is highly heterogeneous both on the intensive and extensive margins. Sales of smaller plants and more marginal products are compressed and are more likely to cease, while larger plants and products exhibit an opposite response. Similar results hold both for the domestic market and for competition facing Mexican exporters in a third market (i.e. the United States)

Policies to Support Businesses through the COVID-19 Shock: A Firm Level Perspective

Relying on a novel dataset covering more than 120,000 firms in 60 countries, this paper contributes to the debate about policies to support businesses through the COVID-19 pandemic. While governments around the world have implemented a wide range of policy support measures, evidence on the reach of these policies, the alignment of measures with firm needs, and their targeting and effectiveness remains scarce. This paper provides the most comprehensive assessment to date of these issues, focusing primarily on developing economies. It shows that policy reach has been limited, especially for more vulnerable firms and countries, and identifies mismatches between policies provided and policies most sought. It also provides some indicative evidence regarding mistargeting of policies and their effectiveness in addressing liquidity constraints and preventing layoffs. This assessment provides some early guidance to policymakers on tailoring their COVID-19 business support packages and points to new directions in data and research efforts needed to guide policy responses to the current pandemic and future crises

Restoring Trade Finance During a Period of Financial Crisis: Stock-Taking of Recent Initiatives

The paper discusses the efforts deployed in 2008 and 2009 by various players, Governments, multilateral financial institutions, regional development banks, export credit agencies, to mobilize sufficient flows of trade finance to off-set some of the 'pull-back' by commercial institutions in the period of acute crisis that has characterized the financial sector in the past two years. Given that 80 to 90% of trade transactions involve some form of credit, insurance or guarantee, one can reasonably say that supply-side driven shortages of trade finance have a potential to inflict further damages to international trade. As an institution geared towards the balanced expansion of world trade, the WTO had been concerned with occurrences of market tightening throughout this period. While a number of public-institutions mobilized financial resources for trade finance in the fall of 2008, this has not been enough to bridge the gap between supply and demand of trade finance worldwide. As the market situation continued to deteriorate in the first quarter of 2009, G-20 leaders in London (April 2009) adopted a wider package for injecting additional liquidity and bringing public guarantees in support of $250 billion of trade transactions in 2009 and 2010. Ahead of the Pittsburgh Meetings, experts reported that more than the targeted amount had been mobilized. In the meantime, through the summer and the fall of 2009, the market situation seemed to have eased - although in many countries, access to trade finance by the smaller traders had become either significantly more expensive or had simply disappeared. One can expect the trade finance market to have its up and downs for some time, because lending for trade is a function of the general lending situation of commercial banks. The paper discusses longer-term initiatives aimed at improving the resilience of the trade finance market to short-term and longer-term shocks

L’invasion mondiale de Drosophila suzukii : être une espèce « cousine » d’un organisme-modèle aide-t-il réellement à établir un contrôle biologique ? Espoirs, désillusions et nouvelles perspectives

L’invasion récente et rapide de Drosophila suzukii en Europe et en Amérique du Nord a suscité de nombreuses études sur le terrain comme en laboratoire. Cette drosophile est en effet à la fois un ravageur important, du fait de son développement dans des fruits à maturité, et une « cousine » de l’espèce modèle Drosophila melanogaster dont la biologie et la génétique sont bien connues. Cet article s’appuie sur les données publiées par différentes équipes et sur des résultats préliminaires pour discuter de l’avancée des recherches et notamment des questions suivantes: en quoi nos connaissances sur D. melanogaster peuvent-elles ou non aider à comprendre et gérer l’invasion de D. suzukii ? Les résultats obtenus en condition de laboratoire avec cette espèce sont-ils représentatifs de sa biologie ? Comment mesurer l’impact écologique d’une espèce invasive si la niche qu’elle vient occuper est peu décrite localement en termes d’espèces présentes et de réseaux trophiques ? Cet article discute aussi des pistes et contraintes en termes de lutte biologique et de biocontrôleThe recent and rapid invasion of Europe and North-America by Drosophila suzukii has generated numerous laboratory and field studies since this fly species is an agricultural pest that causes economical losses by laying eggs and developing in ripening fruits, but also because of its relatedness with the model species Drosophila melanogaster whose biology and genetics are well described. This commentary is based on recent data published by different research groups as well as some of our own preliminary results. It discusses the state of research on D. suzukii and addresses the main following questions: can the wide knowledge on D. melanogaster help us to understand and manage the D. suzukii invasion and how? Are lab results on D. suzukii really informative on its biology? How can the ecological impact of an invasive species be evaluated if the ecological niche is poorly described in terms of biodiversity and trophic network? We also outline constraints for the biological control of this pest species and suggest new possible approaches for its long-term managemen

Final report of EURAMET.M.G-K3 regional comparison of absolute gravimeters

The regional key comparison of absolute gravimeters, EURAMET.M.G-K3 and the simultaneously organized additional comparison, was held in Germany at the Geodetic Observatory Wettzell of the German Federal Agency for Cartography and Geodesy in the spring of 2018.Here we present the list of the participants who actually performed measurements during the comparison, the data submitted by the operators as well as the results of the determination of the gravity as a function of height at the comparison sites. The measurement strategy is briefly discussed and the results of the data harmonization is documented. Finally, the results of the constrained least squares adjustment are presented including the degrees of equivalence of each gravimeter and the key comparison reference values.Main textTo reach the main text of this paper, click on Final Report. Note that this text is that which appears in Appendix B of the BIPM key comparison database kcdb.bipm.org/.The final report has been peer-reviewed and approved for publication by the CCM, according to the provisions of the CIPM Mutual Recognition Arrangement (CIPM MRA).Export citation and abstract BibTeX RIS

Foreign ownership, bank information environments, and the international mobility of corporate governance

This paper investigates how foreign ownership shapes bank information environments. Using a sample of listed banks from 60 countries over 1997–2012, we show that foreign ownership is significantly associated with greater (lower) informativeness (synchronicity) in bank stock prices. We also find that stock returns of foreign-owned banks reflect more information about future earnings. In addition, the positive association between price informativeness and foreign ownership is stronger for foreign-owned banks in countries with stronger governance, stronger banking supervision, and lower monitoring costs. Overall, our evidence suggests that foreign ownership reduces bank opacity by exporting governance, yielding important implications for regulators and governments