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Conference Paper: Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: Theory and Evidence
Title | Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: Theory and Evidence |
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Authors | |
Issue Date | 2015 |
Citation | The 2015 Fall Meeting of the Midwest International Economics Group, Pennsylvania, PA., 23-25 October 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/10722/210658 |
DC Field | Value | Language |
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dc.contributor.author | Chen, C | - |
dc.date.accessioned | 2015-06-23T03:08:29Z | - |
dc.date.available | 2015-06-23T03:08:29Z | - |
dc.date.issued | 2015 | - |
dc.identifier.citation | The 2015 Fall Meeting of the Midwest International Economics Group, Pennsylvania, PA., 23-25 October 2015. | - |
dc.identifier.uri | http://hdl.handle.net/10722/210658 | - |
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 | Midwest International Economics Fall Meeting 2015 | - |
dc.title | 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.identifier.hkuros | 244061 | - |