Capital-Reallocation Frictions and Trade Shocks

• 成果类型: Article
• 署名作者: Lanteri, Andrea; Medina, Pamela; Tan, Eugene
• 署名单位: Duke University; Centre for Economic Policy Research - UK; University of Toronto; University Toronto Scarborough; University of Toronto
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20200429
• 发表日期: 2023
• 页码: 190-228
• 关键词: INTERNATIONAL-TRADE; Aggregate productivity; financial frictions; import competition; firm dynamics; MARKET; entry; plant; EXIT; misallocation

摘要

What are the short-term effects of an import-competition shock on capital reallocation and aggregate productivity? To address this question, we develop a quantitative model with heterogeneous firms and capital-reallocation frictions. We discipline the model with micro data on investment dynamics of Peruvian manufac-turing firms and trade flows between China and Peru. Because of large frictions in firm downsizing and exit, an import-competition shock induces a temporary aggregate-productivity loss and larger dispersion in marginal products, due to investment inaction and exit of some productive firms. Empirical evidence on the effects of trade shocks on capital reallocation supports the model mechanism.