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dc.titleThe Impact of Import Competition from China on Firm Performance in the Peruvian Manufacturing Sector
dc.contributor.authorMercado, Eduardo
dc.contributor.authorPierola, Martha Denisse
dc.contributor.authorSánchez-Navarro, Dennis
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.coveragePeru
dc.coverageChina
dc.date.available2019-12-16T17:30:00
dc.date.issue2019-12-16T00:00:00
dc.description.abstractThis paper studies the impact that import competition from China had on firms performance in the manufacturing sector in Peru in 20052015. Using a firm-level dataset that covers the universe of firms in the formal sector, our results reveal that Peruvian firms reacted to increased competition from Chinese manufacturing goods mainly by altering their factor choices. Smaller firms seem to have opted for reducing their demand for laborfollowing a cost-reduction approach after facing lower saleswhile larger firms seem to have adapted by deepening their capital requirements. We also observe a negative cumulative impact on net sales when we account for longer timeframes. Looking at import competition from China in third markets, we find that increased competition in the Peruvian exporting firms main export markets had a negative effect on employment growth in 20052010.
dc.format.extent36
dc.identifier.doihttp://dx.doi.org/10.18235/0002079
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The_Impact_of_Import_Competition_from_China_on_Firm_Performance_in_the_Peruvian_Manufacturing_Sector_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectProductivity Growth
dc.subjectWorkforce and Employment
dc.subjectManufacturing Industry
dc.subjectExport Growth
dc.subjectImport
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF16 - Trade and Labor Market Interactions
dc.subject.jelcodeJ23 - Labor Demand
dc.subject.keywordsimport competition; employment growth; capital intensity; export growth; productivity growth; export competition
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01092
idb.operationRG-E1542
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