The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies’ choice between processing and ordinary trade –...

This paper examines the relationship between the credit constraints faced by a firm and the unit value prices of its exports. The paper modifies Arkolakisś (2010) model of trade with heterogeneous firms by introducing endogenous quality and credit constraints. The model predicts that tighter...

The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies’ choice between processing and ordinary trade -...

In this paper, we show that there exists a special breed of firms that are active in both ordinary and processing exports. Contrary to the existing literature that describes processing firms as inferior, these mixed firms are superior to other firms in multiple dimensions, and hence we call them...

This paper explores the impact of past and future growth in the Association of Southeast Asian Nations (ASEAN)1 Since the mid-1990s, ACI growth has improved the non-oil terms of trade of the developed countries. There have also been strong complementarities between ACI suppliers of...

This paper explores the impact of past and future growth in the Association of Southeast Asian Nations (ASEAN)1 Since the mid-1990s, ACI growth has improved the non-oil terms of trade of the developed countries. There have also been strong complementarities between ACI suppliers of...

The purpose of this paper is to examine the features and determinants of Chinese intra-industry trade during the 1992-2010 transition periods for China's primary trade partners. We disentangle total intra-industry trade into vertical intra-industry trade and horizontal intra-industry trade,...

This paper examines the impact of highway expansion on aggregate productivity growth andsectoral reallocation between cities in China. To do so, I construct a unique dataset ofbilateral transportation costs between Chinese cities, digitized highway network maps, andfirm-level census. I first...

China has undertaken massive investments in its surface transportation system since the early 1990s, continuing to the present day. We study the impact of these public investments on plant productivity and resource allocation efficiency. We first collect and geocode highly detailed data on...

This paper examines the effects of economic integration resulting from highway construction on aggregate productivity and the spatial distribution of industries. To do so, I construct a unique dataset of bilateral transportation costs between Chinese cities, digitized highway network maps, and...