TY  - GEN
AU  - Heresi, Rodrigo
TI  - Reallocation and Productivity during Commodity Cycles
PY  - 2021
Y1  - 2021/04/14
DO  - 10.18235/0003203
AB  - I study the firm-level dynamic response of a commodity-exporting economy to global cycles in commodity prices. To do so, I develop a heterogeneous-firms model that endogenizes declines in aggregate productivity through reallocation towards less productive firms. Within a given sector, commodity booms reallocate market share away from exporters because of currency appreciation and away from capital-intensive firms because of the increase in capital cost. I provide empirical evidence for these channels using microdata for Chile, the worlds largest copper producer. When fed with the commodity super-cycle of 2003-2012, the calibrated model generates about 50% of the observed productivity decline.
UR  - https://doi.org/10.18235/0003203
ER  -