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dc.titleChina Import Competition and El Salvador Manufacturing Firm Performance
dc.contributor.authorLi, Kun
dc.contributor.authorMesquita Moreira, Mauricio
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.coverageChina
dc.coverageEl Salvador
dc.date.available2019-11-25T17:00:00
dc.date.issue2019-11-25T00:00:00
dc.description.abstractIn this paper, we analyze the impact of Chinese competition on manufacturing firms in El Salvador between 2005 and 2013 using manufacturing survey data and customs transaction data. We find that Chinese import competition in El Salvador has a negative effect on firms employment, total factor productivity (TFP), and revenue. A 1-percentage-point increase in the measure of Chinese import competition in El Salvador reduces the employment of production workers by 2.27%. The negative impact is mainly reflected in employment at firms with less than 50 employees and those with low capital intensity. A 1-percentage-point-increase in the measure of Chinese import competition in El Salvador reduces low-productivity firms TFP by 1.851%, and total revenue of the low-revenue firms by 3.241%. Chinese competition in El Salvador export markets increases the production-worker employment at large firms, reduces TFP at medium-productivity firms, reduces the total revenue of low productivity firms, and increase the total revenue of high-productivity firms. In general, firm offshoring has no effect.
dc.format.extent41
dc.identifier.doihttp://dx.doi.org/10.18235/0002026
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/China_Import_Competition_and_El_Salvador_Manufacturing_Firm_Performance_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectProductivity Growth
dc.subjectExport Market
dc.subjectWorkforce and Employment
dc.subjectManufacturing Industry
dc.subjectLabor Market
dc.subjectImport
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeL25 - Firm Performance: Size, Diversification, and Scope
dc.subject.jelcodeL60 - Industry Studies: Manufacturing: General
dc.subject.keywordsChinese competition; employment; productivity; manufacturing firms in El Salvador
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01082
idb.operationRG-E1542
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