Working Paper
The Impact of Resource Demand Shocks on Manufacturing: Evidence from Plant-Level Data
Abstract: I estimate the impact of palm oil demand shocks on manufacturing firms in Indonesia, using plant-level data from 2000 to 2015. To identify regional shocks, I apply a shift-share design that exploits district-level variations in potential crop yields. I find that the palm oil boom positively affects the vegetable oil industry in regions with high exposure to the boom. To investigate potential crowding-out effects in the input market, I construct a measure of input similarity based on input-output data at the sector level. During the boom, firms in the sectors that use inputs similar to those in the vegetable oil industry experienced slower growth in both sales and labor productivity. These effects persist even after the boom period ends. The results remain robust after controlling for firms that use inputs from the vegetable oil industry. Overall, my findings suggest that the palm oil boom leads to crowding-out effects in the intermediate input market.
Work in Progress
Firm Responses to Industrial Policy: Evidence from Local Content Requirement (LCR) Policy
Abstract: I study the effects of industrial policy on firm-level outcomes. Specifically, I examine the impact of local content requirements (LCR) in the telecommunications sector, where LCR policies have been in place since 2006. These requirements mandate that firms in targeted sectors source a minimum level or type of domestically produced inputs. Using manufacturing census data from 2000 to 2015, I aim to estimate the effects of LCR on the upstream sectors of the targeted industry. To measure firms' exposure to this policy, I use plant-level input-output data. Further analysis will also assess the effects on firm outcomes within the targeted sector.