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It is tricky to design local regulations on global externalities, especially so if firms are mobile. We show that when costs and outside options are firms’ private information, the threat of firm relocation leads to local regulations that are stricter, not looser. This result is general and...
Persistent link: https://www.econbiz.de/10012871745
This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organized in a series of stylized facts, which...
Persistent link: https://www.econbiz.de/10013291442
Firm-to-firm relationships in global value chains create opportunities for North-South technology diffusion. This paper studies technology transfer in value chains when contracts are incomplete and input production technologies are imperfectly excludable. The paper introduces a new taxonomy of...
Persistent link: https://www.econbiz.de/10013307214
Did multinational production (MP) exacerbate or mitigate the collapse of international trade during the Great Recession? What role did MP and trade links play in propagating economic shocks across countries? I resolve the “Multinationals’ Resilience Puzzle” during the Great Recession by...
Persistent link: https://www.econbiz.de/10014358332
feature of economic globalization. What determines the patterns of the internationalization of NGO campaigns? Stylized facts …
Persistent link: https://www.econbiz.de/10013228853
Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a … market outcomes in Mexico. We develop a heterogeneous firm model with imperfect labor markets that captures salient features …
Persistent link: https://www.econbiz.de/10010280836
Mexico. However, wastewater treatment levels also differ greatly among the 2,456 Mexican municipalities. We apply spatial …
Persistent link: https://www.econbiz.de/10012908670
Violence in Mexico has reached unprecedented levels in recent times. After the government began a crackdown on drug … studies the impact of violent conflict on firms, exploiting this period of heightened violence in Mexico commonly referred to … significant distortive effects of the Mexican Drug War on domestic industrial development in Mexico and suggest that the Drug War …
Persistent link: https://www.econbiz.de/10012892241
This paper assesses the impact of the North American Free Trade Agreement on Mexican manufacturing plants’ prices and markups. We distinguish between Mexican goods that are exported and those sold domestically, and decompose their prices separately into markups and marginal costs. We then...
Persistent link: https://www.econbiz.de/10012867011
It has been frequently quoted in the literature that one decisive cause of the productive performance of an economy might be infrastructure investment. This paper provides a dual profit theoretical framework of measuring the effects of infrastructure on economic performance in terms of gains in...
Persistent link: https://www.econbiz.de/10013316826