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Conference Paper: The Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: theory and evidence
Title | The Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: theory and evidence |
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Authors | |
Keywords | Heterogeneous firms Firm productivity Trade liberalization Agency problem |
Issue Date | 2015 |
Citation | The 11th World Congress of the Econometric Society, Montreal, Canada, 17-21 August 2015. How to Cite? |
Abstract | Ample empirical findings show that trade liberalization mitigates the agency problem inside the firm and improves firm productivity, which does not square well with the existing literature. I propose a general equilibrium model highlighting the agency problem to explain this finding. When an economy opens up to trade, managers of unproductive surviving non-exporters are incentivized to exert more effort, which leads to a within-firm productivity improvement. Importantly, this effect only applies to unproductive firms that are subject to the agency problem. Finally, using Colombian plant-level data, I present evidence to support the model's unique empirical predictions. |
Persistent Identifier | http://hdl.handle.net/10722/210644 |
DC Field | Value | Language |
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dc.contributor.author | Chen, C | - |
dc.date.accessioned | 2015-06-22T08:36:33Z | - |
dc.date.available | 2015-06-22T08:36:33Z | - |
dc.date.issued | 2015 | - |
dc.identifier.citation | The 11th World Congress of the Econometric Society, Montreal, Canada, 17-21 August 2015. | - |
dc.identifier.uri | http://hdl.handle.net/10722/210644 | - |
dc.description.abstract | Ample empirical findings show that trade liberalization mitigates the agency problem inside the firm and improves firm productivity, which does not square well with the existing literature. I propose a general equilibrium model highlighting the agency problem to explain this finding. When an economy opens up to trade, managers of unproductive surviving non-exporters are incentivized to exert more effort, which leads to a within-firm productivity improvement. Importantly, this effect only applies to unproductive firms that are subject to the agency problem. Finally, using Colombian plant-level data, I present evidence to support the model's unique empirical predictions. | - |
dc.language | eng | - |
dc.relation.ispartof | Econometric Society World Congress | - |
dc.subject | Heterogeneous firms | - |
dc.subject | Firm productivity | - |
dc.subject | Trade liberalization | - |
dc.subject | Agency problem | - |
dc.title | The Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: theory and evidence | - |
dc.type | Conference_Paper | - |
dc.identifier.email | Chen, C: ccfour@hku.hk | - |
dc.identifier.authority | Chen, C=rp01944 | - |
dc.description.nature | postprint | - |
dc.identifier.hkuros | 244060 | - |