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"Resource boom and non-resource firms: Mongolia 2007 and 2011" by Kankesu Jayanthakumaran and Mohammad Tariful Bari

This paper intends to show the impact that a resource boom can have on non-resource firms by testing the hypotheses pertaining to the shifts in labour productivity of non-resource heterogeneous firms in Mongolia during the resource boom of 2007 and 2011. Non-parametric methods such as Kernel distribution and Kolmogorov-Smirnov equality test are used to show that during this boom period, while low-productivity firms in the non-resource sector improved productivity, highly productive firms experienced a decline in productivity; the net effect is a downturn of aggregate productivity in the non-resource sector that is consistent with the existing macro perspective of resource curse hypothesis. The exporting sector experienced a similar result whereby high productive exporters lose productivity and therefore export competency during this resource boom. In reality, highly productive firms actually generate spillovers, so any decline in their productivity harms the nations’ growth in the lo ....

Firm Heterogeneity , Esource Boom ,

Demand-Driven Growth


this post authored by Marek Ignaszak and Petr Sedlacek
To gauge the efficacy of policies aimed at spurring growth, we must first fully understand the sources of aggregate growth. This column argues that understanding the drivers of economic growth requires paying attention not only to productivity and R&D dynamics at the firm level, but also to changes in demand for firms’ products. The authors provide a new perspective on commonly used supply-side pro-growth policies and open the door to analysing demand-side policies such as public procurement or product market regulation, which have been present in the policy debate but have largely escaped academic circles. ....

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Understanding global value chains by accounting for firm heterogeneity in US production within industries


Robert Johnson, Guillermo Noguera
The global engagement of a firm could range from none at all, to exporting and importing only, to exporting, importing and engaging in foreign direct investment. Research has shown that, for firms located in the US, the most globally engaged firms dominate both trade and investment.  Bernard et al. (2009) find that multinational enterprises (MNEs) accounted for roughly 90% of US exports and imports of goods in 1993 and 2000.  Bruner and Grimm (2019) find that MNEs accounted for roughly 90% of US exports and imports of selected services in 2011–2017.  The dominance of MNEs in both trade and investment suggests that most international trade is associated with their global value chains (GVCs) and that the traditional notion of exports and imports representing transactions between producers and final consumers is in need of an update. ....

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