The entry of Wal-Mart into Mexico 20 years ago has reshaped the country’s industrial structure. This column argues that the effect has been polarising. While Wal-Mart’s retailing power has helped more productive companies expand their market shares and boost productivity, the retailer’s pressure to lower prices and innovate has pushed down mark-ups and marginalised less capable producers.
Leonardo Iacovone, Beata Javorcik, Wolfgang Keller, James Tybout, 20 August 2011
Ernesto Aguayo-Téllez, Jim Airola, Chinhui Juhn, 24 August 2010
Promoting gender equality is a Millennium Development Goal. This column explores the effects of trade liberalisation in Mexico during the 1990s on the country’s gender gap. It finds that trade benefitted sectors of the economy that employ more women, such as textiles and clothing, thereby helping to raise women’s earnings and relative social status.
Leonardo Iacovone, Beata Javorcik, 01 August 2010
Policymakers care deeply about exports, which have accompanied most successful development stories in the last few decades. This column provides evidence from Mexico suggesting that uncertainty and information asymmetries are significant barriers to entry for exporters and should be the focus of policy interventions.
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