File Download
Supplementary

Conference Paper: The Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: theory and evidence

TitleThe Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: theory and evidence
Authors
KeywordsHeterogeneous firms
Firm productivity
Trade liberalization
Agency problem
Issue Date2015
Citation
The 11th World Congress of the Econometric Society, Montreal, Canada, 17-21 August 2015. How to Cite?
AbstractAmple 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 Identifierhttp://hdl.handle.net/10722/210644

 

DC FieldValueLanguage
dc.contributor.authorChen, C-
dc.date.accessioned2015-06-22T08:36:33Z-
dc.date.available2015-06-22T08:36:33Z-
dc.date.issued2015-
dc.identifier.citationThe 11th World Congress of the Econometric Society, Montreal, Canada, 17-21 August 2015.-
dc.identifier.urihttp://hdl.handle.net/10722/210644-
dc.description.abstractAmple 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.languageeng-
dc.relation.ispartofEconometric Society World Congress-
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectHeterogeneous firms-
dc.subjectFirm productivity-
dc.subjectTrade liberalization-
dc.subjectAgency problem-
dc.titleThe Agency Problems, Trade Liberalization, and Within-Firm Productivity Gains: theory and evidence-
dc.typeConference_Paper-
dc.identifier.emailChen, C: ccfour@hku.hk-
dc.identifier.authorityChen, C=rp01944-
dc.description.naturepostprint-
dc.identifier.hkuros244060-

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats