Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237459 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1164
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
I study the firm-level dynamic response of a commodity-exporting economy to global cycles in commodity prices. To do so, I develop a heterogeneous-firms model that endogenizes declines in aggregate productivity through reallocation towards less productive firms. Within a given sector, commodity booms reallocate market share away from exporters because of currency appreciation and away from capital-intensive firms because of the increase in capital cost. I provide empirical evidence for these channels using microdata for Chile, the worlds largest copper producer. When fed with the commodity super-cycle of 2003-2012, the calibrated model generates about 50% of the observed productivity decline.
Subjects: 
Productivity
Resource booms
Open economy macroeconomics
JEL: 
D24
Q33
F41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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