Beata Smarzynska Javorcik

Beata Smarzynska Javorcik
University of Oxford | OX · Department of Economics

Ph.D. in Economics, Yale 1999

About

130
Publications
27,675
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12,641
Citations
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October 2007 - present
University of Oxford

Publications

Publications (130)
Article
The COVID-19 pandemic has drawn attention to high dependence of industrialized countries on Chinese suppliers and led to calls for increasing resilience through diversification of supply sources. This article argues that geographic reshaping of global value chains will require substantial flows of foreign direct investment. As such flows are projec...
Article
This study documents a substantial decline in the exports of major trading nations taking place in March 2020. Accounting for product-specific seasonality and annual trends, the data suggest a drop by 38 per cent in France, about a quarter in Turkey and Germany, and 12 per cent in the US, relative to their historical averages. Detailed export data...
Article
This paper draws attention to import duty evasion as a margin through which firms adjust to changes in trade policy. This margin is different from the other forms of adjustment, as it can be employed very fast and thus it may constitute the initial reaction to the shock before a slower adjustment through the other channels take place. The study als...
Article
Full-text available
This paper argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005-2011, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-su...
Article
The link between foreign ownership and environmental performance remains a controversial issue. This paper contributes to our understanding of this subject by analyzing the impact of foreign acquisitions on plant-level energy intensity. The analysis applies a difference-in-differences approach combined with propensity score matching to the data fro...
Technical Report
Full-text available
The link between foreign ownership and environmental performance remains a controversial issue. This paper contributes to our understanding of this subject by analyzing the impact of foreign acquisitions on plant-level energy intensity. The analysis applies a difference-indifferences approach combined with propensity score matching to the data from...
Article
The literature has documented how firms adjust to increased competitive pressures arising from globalization. This paper demonstrates a new margin of adjustment, namely, provision of trade credit. A simple model predicts that an increase in competitive pressures will lead exporters to provide trade credit and lower prices and that the price adjustm...
Article
This paper examines the effect of obtaining an ISO 9000 certification on various aspects of business performance using firm-level panel data from Slovenia covering the period 1987-2006. To control for the possible endogeneity of obtaining the certification propensity score matching is combined with a difference-in-differences approach. The results...
Article
This paper examines the effect of foreign ownership on gender-related employment outcomes and work practices in Japan. The data indicate that the proportion of females among workers, managers, directors and board members is higher in foreign affiliates than in domestic firms of comparable size operating in the same industry. Foreign affiliates are...
Article
This study argues that there is a systematic difference in the gender wage gap (GWG) between exporting firms and non-exporters. Exporters may require greater commitment from their employees, such as working particular hours to communicate with partners in different time zones or travelling at short notice, and may therefore disproportionately rewar...
Research
Full-text available
The Czech and Slovak Customs Union (CSCU), which came into effect in January 1993, differs from regular regional trading arrangements as its goal was to minimize the economic cost of a decline in economic ties between its members rather than to set in motion the mechanism of integration. The creation of the CSCU ensured a smooth and conflict-free b...
Article
Full-text available
The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focus on divestments, that is, foreign affiliates that are sold to local owners. To examine the effect of the owner...
Article
Full-text available
This paper examines the relationship between the presence of foreign affiliates and product upgrading by Turkish manufacturing firms. The analysis suggests that Turkish firms in sectors and regions more likely to supply foreign affiliates tend to introduce more complex products, where complexity is captured using a measure developed by Hausmann and...
Article
Full-text available
This study documents some unintended consequences of the World Trade Organization (WTO) membership by providing evidence on displacement of tariff evasion driven by the WTO accession process. The analysis focuses on the WTO Customs Valuation Agreement (CVA) which limits the discretion of customs officials when it comes to assessing the price of imp...
Article
Full-text available
We review the implications of the “core-competence” model of multi-product firms, including the “market-size puzzle”: for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; hence the model predicts that most domestic firms should export more of their core products t...
Article
This paper examines the effect of Walmart's entry into Mexico on Mexican manufacturers of consumer goods. Guided by firm interviews that suggested substantial heterogeneity across firms in how they responded to Walmart's entry, we develop a dynamic industry model in which firms decide whether to sell their products through Walmex (short for Walmart...
Article
Despite the controversy often surrounding retail sector liberalization, there little empirical evidence on the implications of such a reform. Using data from Romania, this study sheds light on what happens to the supplying industries after a country opens its retail sector to foreign direct investment. The study relies on a unique dataset combining...
Article
Are jobs created by foreign investors good jobs? The evidence reviewed in this article is consistent with the view that jobs created by foreign direct investment (FDI) are good jobs, both from the worker’s and the country’s perspective. From the worker’s perspective, this is because such jobs are likely to pay higher wages than jobs in domestic fir...
Article
The literature has documented a positive effect of foreign ownership on firm performance. But is this effect due to a one-time knowledge transfer or does it rely on continuous injections of knowledge? To shed light on this question we focus on divestments, that is, foreign affiliates that are sold to local owners. To establish a causal effect of th...
Article
Drawing on firm-level econometric analyses, enterprise surveys, and case studies, this article reviews the evidence on international technology transfer taking place through flows of foreign direct investment (FDI). It summarizes arguments for why FDI can transmit knowledge across international borders, presents evidence on knowledge transfer from...
Article
This study presents evidence suggesting that attracting direct investment (FDI) offers potential for raising the quality of exports in developing countries. Our analysis relates unit values of exports at the four-digit SITC level to data on sectors treated by investment promotion agencies as a priority in their efforts to attract FDI. The sample co...
Article
Information asymmetries constitute a significant obstacle to capital flows across international borders, and in particular to flows of foreign direct investment (FDI) to emerging markets. Many governments aim to reduce information barriers by engaging in investment promotion activities. Despite potentially large benefits of FDI and popularity of in...
Article
Full-text available
This study examines developments at the plant-product level preceding an expansion into foreign markets. It relies on very detailed Mexican data for 1994-2004, a period of liberalization in US trade policy vis a vis Mexico, mandated by the North American Free Trade Agreement. Our approach is novel in that we focus on quality, proxied by domestic pr...
Article
As red tape in host countries and information asymmetries constitute a significant obstacle to investment flows across international borders, an important policy question is: what can aspiring FDI destinations do to reduce such barriers? This study uses newly collected data on 124 countries to examine the effects of investment promotion on inflows...
Article
This study uses firm-level panel data from Romania to examine whether the origin of foreign investors affects the degree of vertical spillovers from FDI. Investors' origin may matter for spillovers to domestic producers supplying intermediate inputs in two ways. First, the share of intermediates sourced locally by multinationals is likely to increa...
Article
Full-text available
This paper examines the effect of Wal-Mart's entry into Mexico on Mexican manufacturers of consumer goods. Guided by firm interviews that suggested substantial heterogeneity across firms in how they responded to Wal-Mart's entry, we develop a dynamic industry model in which firms decide whether to sell their products through Walmex (short for Wal-M...
Article
Full-text available
We develop a new model of multi-product firms which invest to improve both the quality of their individual products and of their brand. Because of flexible manufacturing, products closer to firms' core competence have lower costs, so they produce more of them, and also have higher incentives to invest in their quality. These two effects have opposi...
Article
The debate on trade and growth increasingly focuses on the composition of exports. Exports of more “sophisticated” products appear to be positively correlated with growth, and upgrading the quality of exports is high on the policy agenda of many countries. This study presents evidence suggesting that attracting inflows of FDI offers potential for r...
Article
Full-text available
This study examines developments at the plant-product level preceding an expansion into foreign markets. It relies on very detailed Mexican data for 1994-2004, a period of liberal-ization in US trade policy vis a vis Mexico, mandated by the North American Free Trade Agreement. Our approach is novel in that we focus on quality, proxied by domestic p...
Article
Conventional explanations for the post-1991 growth of India’s manufacturing sector focus on goods trade liberalization and industrial de-licensing. We demonstrate the powerful contribution of a neglected factor: India’s policy reforms in services. The link between these reforms and the productivity of manufacturing firms is examined using panel dat...
Article
Recent research on international trade focuses on firm-product-level heterogeneity and the role of uncertainty in shaping international trade. This article contributes to the literature by examining product-level dynamics within firms in the context of Mexican trade integration under NAFTA. The data show intense product churning within firms and co...
Article
As information asymmetries between host countries and potential foreign investors constitute a significant obstacle to investment flows across international borders, an important policy question is: what can aspiring FDI destinations do to reduce such barriers? This study uses newly collected data on 124 countries to examine the effects of investme...
Article
Countries strive to attract foreign direct investment hoping that knowledge brought by multinationals will spill over to domestic producers. While the literature has cast doubt on the existence of spillovers within industries, it has found evidence of spillovers from multinationals to the supplying sectors. However, the existing studies rely on ind...
Article
Full-text available
This paper uses a unique data set on Mexican firms to test a number of hypotheses implied by recent work on multi-product firms in open economies. The findings are consistent with the "flexible manufacturing" view that firms have a "core competence" product, and sell fewer products in their export than their home markets, though with possibly highe...
Article
This paper analyzes the causal relationship between foreign ownership and various aspects of plant performance using micro data from the Indonesian Census of Manufacturing. It examines the implications of foreign ownership in two different contexts: foreign acquisitions and foreign privatizations. To control for the possible endogeneity of FDI deci...
Article
Full-text available
Using a unique data set on the Czech Republic for 1994–2003, this article examines the relationship between a firm's liquidity constraints and its supply linkages with multinational corporations (MNCs). The empirical analysis indicates that Czech firms supplying multinationals are less credit constrained than are nonsuppliers. Closer inspection of...
Article
The debate on trade and growth increasingly focuses on the composition of exports, as exports of more "sophisticated" products appear to be positively correlated with growth. Upgrading the quality of exports is also high on the policy agenda of many countries. This study argues that policies aimed at attracting FDI inflows offer potential for upgra...
Article
This paper studies the joint impact of corruption on the entry mode and volume of inward foreign direct investment (FDI) using a unique firm-level data set. We find that corruption not only reduces inward FDI, but also shifts the ownership structure towards joint ventures. The latter finding supports the view that corruption increases the value of...
Article
This paper studies the impact of corruption in emerging markets on the mode of entry and volume of inward foreign direct investment using a unique firm-level data set. It examines two effects of corruption simultaneously: a reduction in the volume of foreign investment and a shift in the ownership structure. Corruption makes local bureaucracy less...
Article
Full-text available
The debate on trade and growth increasingly focuses on the composition of exports. Exports of more "sophisticated" products appear to be positively correlated with growth, and upgrading the quality of exports is high on the policy agenda of many countries. This study presents evidence suggesting that attracting inflows of FDI offers potential for u...
Article
Full-text available
Sustainable development requires attaining a balance between maintaining environmental quality and controlling the impact of environmental regulations on productivity and competi-tiveness. This paper examines a margin of adjustment not commonly addressed in evaluating environmental regulation; the response by multi-product firms at the intensive (q...
Article
Using a unique data set from the Czech Republic for 1994-2003, this study examines the relationship between a firm’s liquidity constraints and its supply linkages with multinational corporations (MNCs). The empirical analysis indicates that Czech firms supplying MNCs are less credit constrained than non-suppliers. A closer inspection of the timing...
Article
Full-text available
Recent developments in trade theory, especially research on multi-product firms, have not been matched by similar progress on the empirical front. This paper aims to fill this gap by presenting a novel set of stylized facts on firm-product dynamics observed during an export boom. This exercise is possible thanks to a unique firm-product level datas...
Article
During the past two decades many economies have opened their retail sector to foreign direct investment, yet little is known about possible implications of such liberalization on the economies of developing host countries. Using firm-level data from Romania, this study examines how the presence of global retail chains affects firms in the supplying...
Article
Although some economists remain skeptical of the existence of positive externalities associated with foreign direct investment (FDI), many countries spend large sums attracting foreign investors in the hope of benefiting from knowledge spillovers. Data collected through enterprise surveys conducted in the Czech Republic and Latvia suggest that the...
Article
An emerging literature has demonstrated some unique characteristics of trade in differentiated products. This paper contributes to the literature by postulating that differentiated products may be subject to greater tariff evasion due to the difficulties associated with assessing their quality and price. Using product-level data on trade between Ge...
Article
This paper uses a case study approach to explore the effects of NAFTA and GATT membership on innovation and trade in the Mexican soaps, detergents and surfactants (SDS) industry. Several basic findings emerge. First, the most fundamental effect of NAFTA and the GATT on the SDS industry was to help induce Wal-Mart to enter Mexico. Once there, Walmex...
Article
Full-text available
Abstract This study uses Mexican plant-product level data to examine the behavior of pro- ducers preceding an expansion into foreign markets in a period of profound changes in trade policies mandated,by the North American Free Trade Agreement (NAFTA). Our approach is novel in that we focus on the domestic price premium,of current and future export...
Article
Exxon Mobil and ConocoPhillips stock price has been predicted using the difference between core and headline CPI in the United States. Linear trends in the CPI difference allow accurate prediction of the prices at a five to ten-year horizon.
Article
Many countries spend significant resources on investment promotion agencies (IPAs) in the hope of attracting inflows of foreign direct investment (FDI). Despite the importance of this question for public policy choices, little is known about the effectiveness of investment promotion efforts. This study uses newly collected data on national IPAs in...
Article
Full-text available
Many countries spend significant resources on investment promotion agencies in the hope of attracting inflows of foreign direct investment. Despite the importance of this question for public policy choices, little is known about the effectiveness of investment promotion efforts. This study uses newly collected data on national investment promotion...
Article
While there is considerable empirical evidence on the impact of liberalizing trade in goods, the effects of services liberalization have not been empirically established. This study examines the link between services sector reforms and the productivity of manufacturing industries relying on services inputs. The results, based on firm-level data fro...
Article
Although there exists a sizeable literature documenting the importance of ethnic networks for international trade, little attention has been devoted to studying the effects of migrants on foreign direct investment (FDI). The presence of migrants can stimulate FDI by promoting information flows across international borders and by serving as a contra...
Article
While there is considerable empirical evidence on the impact of liberalizing trade in goods, the effects of services liberalization have not been empirically established. This study examines the link between services sector reforms and the productivity of manufacturing industries relying on services inputs. Several aspects of services liberalizatio...
Article
While there is considerable empirical evidence on the impact of liberalizing trade in goods, the effects of services liberalization have not been empirically established. This study examines the link between services sector reforms and the productivity of manufacturing industries relying on services inputs. The results, based on firm-level data fro...
Article
This study examines whether foreign ownership share in investment projects affects the extent of spillovers from foreign direct investment. The analysis, based on a Romanian firm-level data set produces evidence consistent with positive intra-sectoral spillovers resulting from wholly-owned foreign affiliates but not from projects with joint domesti...
Article
Full-text available
This study investigates whether labor market flexibility affects foreign direct investment (FDI) flows across 19 Western and Eastern European countries. The analysis uses firm level data on new investments undertaken in the period 1998–2001. The study employs a variety of proxies for labor market regulations reflecting the flexibility of individual...
Article
Full-text available
This paper uses micro data from the Indonesian Census of Manufacturing to analyze the causal relationship between foreign ownership and plant productivity. To control for the possible endogeneity of the FDI decision, the difference in differences approach is combined with a matching technique. An advantage of this novel method is the ability to fol...
Article
There exists a vast empirical literature searching for the evidence of knowledge spillovers from foreign direct investment (FDI). Implicit to this analysis lies the assumption that foreign ownership per se conveys some intangible advantage whose proximity can be beneficial to domestic firms. Yet there is no robust empirical confirmation that this a...
Article
This study examines the determinants of entry by foreign firms, using information on 515 Chinese industries at the provincial level during 1998–2001. The analysis is based on new economic geography theory and thus focuses on market and supplier access within and outside the province of entry, as well as production and trade costs. The results indic...
Article
The authors examine the impact of Poland's trade liberalization in 1994-2001 on the industry wage structure. The liberalization was undertaken in preparation for Poland's accession to the European Union and was more pronounced in industries with larger shares of unskilled labor. Their analysis indicates that a decrease in an industry tariff was ass...
Article
Full-text available
Economists have long recognized that richer countries trade more among themselves than with poorer economies due to a closer match of exporter supply structures and importer preferences. In the literature, the closeness of supply and demand has traditionally been determined by the quality of products-as expressed in the so-called Linder hypothesis....
Article
This study takes a new look at the regulatory determinants of foreign direct investment (FDI) by asking whether labour market flexibility affects FDI flows across 19 Western and Eastern European countries. The analysis is based on firm-level data on new investments undertaken during the 1998-2001 period. The study employs a variety of proxies for l...
Article
This paper provides the first empirical analysis of the global distribution of trademarks. It is based on a new dataset compiled by the authors from the statistical information published by the World Intellectual Property Organisation (WIPO). The questions analysed include the distribution of trademarks among countries of different income levels, t...
Article
The "pollution haven" hypothesis refers to the possibility that multinational firms, particularly those engaged in highly polluting activities, relocate to countries with weaker environmental standards. Despite the plausibility and popularity of this hypothesis, the existing literature has found only limited evidence to support it. To enhance our a...
Article
Full-text available
Exxon Mobil and ConocoPhillips stock price has been predicted using the difference between core and headline CPI in the United States. Linear trends in the CPI difference allow accurate prediction of the prices at a five to ten-year horizon.
Article
Full-text available
This study uses a firm-level panel data set from Romania to examine whether the nationality of foreign investors affects the degree of vertical spillovers from foreign direct investment. Investors' country of origin may matter for spillovers to domestic producers in upstream sectors (supplying intermediate inputs) in two ways. First, the share of i...
Article
Full-text available
This paper focuses on policies facilitating firm adjustment to globalization. We briefly review the effects of trade and investment liberalization on firms, focusing on within-industry effects. We postulate that governments' role in supporting the process is to: (i) ensure that firms face the 'right' incentives to adjust, and (ii) intervene in area...
Article
Full-text available
Many countries strive to attract foreign direct investment (FDI) hoping that knowledge brought by multinationals will spill over to domestic industries and increase their productivity. In contrast with earlier literature that failed to find positive intraindustry spillovers from FDI, this study focuses on effects operating across industries. The an...
Article
Trademarks are words, signs, symbols or combinations thereof that identify goods as manufactured by a particular person or a company, therefore allowing consumers to distinguish between goods originating in different sources. Trademarks belong to the wider family of intellectual property rights (IPRs), and once registered benefit from legal protect...
Article
Full-text available
The authors take a new look at the regulatory determinants of foreign direct investment (FDI) by asking whether labor market flexibility affects FDI flows across 25 Western and Eastern European countries. Their analysis is based on firm level data on new investments during the 1999-2001 period. The authors employ a variety of labor market flexibili...
Article
While existing literature examined the impact of intellectual property protection on the volume of foreign direct investment (FDI), little is known about its effect on the composition of FDI inflows. This paper addresses this question empirically using a unique firm-level data set from Eastern Europe and the former Soviet Union. It finds that weak...
Article
How does the preferred entry mode of foreign investors depend on their technological capability relative to that of their rivals? The authors develop a simple model of entry mode choice and evaluate its main testable implication using data on foreign investors in Eastern European countries and the successor states of the former Soviet Union. The mo...
Article
The paper determines the factors affecting the export performance of firms in three main manufacturing sectors in the Philippines. Specifically, firm-level characteristics like firm size, firm age, and foreign affiliation are identified and statistically tested to determine if they affect a firm's capability to export. The study uses a novel econom...

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