https://9p7pzq3jbl.execute-api.us-east-1.amazonaws.com/ProdStage Skip to main content
Publications
Advanced Search

View metadata

dc.titleReallocation and Productivity during Commodity Cycles
dc.contributor.authorHeresi, Rodrigo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageChile
dc.date.available2021-04-14T00:00:00
dc.date.issue2021-04-14T00:00:00
dc.description.abstractI 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.
dc.format.extent59
dc.identifier.doihttp://dx.doi.org/10.18235/0003203
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Reallocation-and-Productivity-during-Commodity-Cycles.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectProductivity
dc.subjectLabor Productivity
dc.subjectIndustrial Productivity
dc.subjectCommodity Price
dc.subjectExchange Rate
dc.subjectManufacturing Industry
dc.subject.jelcodeF41 - Open Economy Macroeconomics
dc.subject.jelcodeD24 - Production • Cost • Capital • Capital, Total Factor, and Multifactor Productivity • Capacity
dc.subject.jelcodeQ33 - Resource Booms
dc.subject.keywordsProductivity;Resource booms;Open economy macroeconomics
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01164
idb.operationRG-K1098
Return to Publication