Iacovone, Leonardo; Rauch, Ferdinand; Winters, L. Alan - In: Journal of International Economics 89 (2013) 2, pp. 379-392
This paper exploits the surge in Chinese exports from 1994 to 2004 to evaluate the effects of a competition shock from a low wage competitor for producers in an important middle-income country, Mexico. We find that this shock causes selection and reallocation at both firm and product levels and...