, fuel price hikes result in higher productivity and profits of manufacturing plants. The results of instrumental variable … estimation imply that a 10 percent increase in fuel prices would lead to a 3.3 percent increase in total factor productivity for … Indonesian and 1.2 percent for Mexican plants. The evidence suggests that effects are driven by the incentives that fuel price …

difference-in-difference estimation strategy. The minimum wage hike is found to increase firms' exit rates from the formal …