Excerpt
Excerpt
Trade Adjustment and Productivity in Large Crises. Gita Gopinath, May 10, 2013, Paper. "We empirically characterize the mechanics of trade adjustment during the Argentine crisis using detailed transaction-level customs data covering the universe of import transactions during 1996-2008. Though imports collapsed by nearly 70 percent from 2000-2002, the entry and exit of firms or products at the country level (the “extensive margin") played a small role in this adjustment. By contrast, the within-firm churning of inputs (the sub-extensive margin") played a sizeable role, and we highlight significant heterogeneity..." Link verified March 28, 2014