Working Paper: NBER ID: w12950
Authors: Svetlana Demidova; Kala Krishna
Abstract: This paper shows that the result of Ju and Krishna (2002, 2005), i.e., the non-monotonicity in the comparative statics across regimes, disappears, if exporters differ in their productivities, which provides very different predictions about the results of policy changes.
Keywords: Firm heterogeneity; Rules of origin
JEL Codes: F12; F13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| introduction of productivity differences among exporters (F12) | elimination of nonmonotonicity in comparative statics (D50) |
| stricter rules of origin (ROOs) (F55) | reallocation of firms (R30) |
| reallocation of firms (R30) | adjustments in wages (J31) |
| reallocation of firms (R30) | adjustments in productivity cutoffs for exporters (F14) |
| stricter rules of origin (ROOs) (F55) | adjustments in productivity cutoffs for exporters (F14) |
| stricter rules of origin (ROOs) (F55) | adjustments in wages (J31) |