abstract: The dissertation consists of two essays in misallocation and development. In particular, the essays explore how government policies distort resource allocation across production units, and therefore affect aggregate economic and environmental outcomes. The first chapter studies the aggregate consequences of misallocation in a firm dynamics model with multi-establishment firms. I calibrate my model to the US firm size distribution with respect to both the number of employees and the number of establishments, and use it to study distortions that are correlated with establishment size, or so-called size-dependent distortions to establishments, which are modeled as implicit output taxes. In contrast to previous studies, I find that size-dependent distortions are not more damaging to aggregate productivity and output than size-independent distortions, while the implicit tax revenue approximately summarizes the effects on aggregate output. I also use the model to compare the effects of size-dependent distortions to establishments and to firms, and find that they have different effects on firm size distribution, but have similar effects on aggregate output. The second chapter studies the effects of product market frictions on firm size distribution and their implications for industrial pollution in China. Using a unique micro-level manufacturing census, I find that larger firms generate and emit less pollutants per unit of production. I also provide evidence suggesting the existence of size-dependent product market frictions that disproportionately affect larger firms. Using a model with firms heterogeneous in productivity and an endogenous choice of pollution treatment technology, I show that these frictions result in lower adoption rate of clean technology, higher pollution and lower aggregate output. I use the model to evaluate policies that eliminate size-dependent frictions, and those that increase environmental regulation. Quantitative results show that eliminating size-dependent frictions increases output by 30%. Meanwhile, the fraction of firms using clean technology increases by 27% and aggregate pollution decreases by 20%. In contrast, a regulatory policy which increases the clean technology adoption rate by the same 27%, has no effect on aggregate output and leads to only 10% reduction in aggregate pollution. / Dissertation/Thesis / Doctoral Dissertation Economics 2016

No description available.

This dissertation consists of three essays in international economics. The first chapter investigates whether opening up to international financial flows improves aggregate productivity in the presence of limited contract enforceability. I present a model of two countries that differ in terms of the degree of contract enforcement and analyze the consequences of financial market integration among those countries. Then, I test the predictions of the model empirically. The model predicts that aggregate productivity improves after financial integration in economies with strong contract enforcement, while it deteriorates in countries with weak enforcement. The empirical analysis confirms that the effect of capital account liberalization on productivity is different in economies with different degrees of contract enforcement. The second chapter addresses whether foreign firms harm the environment in a host country where environmental standards are not as strict as in the source country. The question as to whether strict environmental regulations in developed economies cause the relocation of pollution-intensive production into developing countries has captured the attention of economists. Instead, we ask whether multinational firms, frequently the target of environmentalists, are in fact harmful for a host country's environment. Using plant-level data from Chile, we find that foreign firms are cleaner than domestic plants. We then propose a model that delivers these features of the data. Using the model we get policy implications regarding environmental regulations and multinational production. The last chapter examines the link between producer's productivity and export participation. Empirical work reveals that exporters have substantially higher productivity than non-exporters. The two explanations proposed for the apparent gap are self-selection of firms into competitive export markets and learning by exporting. Knowing the direction of causality between productivity and exporting has important policy implications. If firms become exporters simply because they are more productive and there are no further gains from being an exporter, then policies that aim to increase the number of exporters are not appropriate. I test these hypotheses by applying matching techniques on plant-level data from the Chilean manufacturing sector. I find clear evidence for self-selection, relatively more efficient firms become exporters. However, I do not detect further improvement of productivity following the entry into export markets. / text

La présente thèse contribue à la littérature en économie internationale en s'intéressant à l'impact des lieux commerciaux et des réformes structurelles sur la croissance de la productivité agrégée dans le secteur manufacturier en Europe et en Inde. Dans le premier chapitre co-écrit avec Antoine Berthou, Jong-Chung Chung et Kalina Manova, nous montrons que l'expansion des exportations et des importations stimule la productivité du travail, mais seule la demande à l’exportation réalloue l'activité vers les entreprises plus productives en présence de distorsions de prix. De plus, les frictions liées aux imperfections de marché et la mauvaise qualité des institutions freinent la capacité des économies à réagir aux chocs de commerce subis par les entreprises nationales. Dans le second chapitre, je trouve que l'augmentation des importations d'intrants intermédiaires depuis la Chine contribue de manière significative à la croissance agrégée de la PTF en France grâce à une plus grande efficacité de répartition des parts de marché entre les entreprises. En effet, permettre à un plus grand nombre d'entreprises d'avoir accès à des biens intermédiaires au meilleur rapport qualité-prix stimule la croissance de la productivité agrégée. Dans le troisième chapitre co-écrit avec Adil Mohommad et Piyaporn Sodsriwiboon, nous montrons que des réformes favorisant davantage de flexibilité sur le marché du travail et une meilleure allocation des crédits entre entreprises réduisent les distorsions de marché payées par les entreprises et génèrent des gains de productivité et une croissance économique plus forte à long terme en Inde. / In this dissertation, I contribute to the literature on international economics by drawing attention to the impact of trade flows and structural reforms on productivity growth in the manufacturing sector in Europe and India. ln the first chapter co-authored, with Antoine Berthou, Jong-Chung Chung and Kalina Manova, we demonstrate that growth in exports and imports boosts labor productivity, but only export demand reallocates activity toward more productive firms in presence of price distortions. Moreover, market and institutional frictions dampen the ability of economies to react and gain from trade shocks. ln the second chapter, I show that the increase in Chinese imports of intermediate inputs is a significant driver of aggregate TFP growth in France as it increases efficiency in sharing market shares between firms. Allowing more firms to access intermediate goods at the best price-quality ratio stimulates aggregate productivity growth. ln the third chapter, co-written with Adil Mohommad and Piyapom Sodsriwiboon, our finding suggests that removing structural rigidities in the labor market and improving credit allocation would reduce distortions and contribute to productivity gains and long term growth in India.

Cette thèse contribue à la compréhension des frictions sur le marché de travail et comment ces frictions affectent les agrégats macroéconomiques comme le chômage et la productivité. Elle jette également un regard critique sur les politiques environnementales telles que la taxe carbone et le financement vert. Le premier chapitre examine comment les contrats de non-competition signés entre employeurs et employés affectent le chômage, la productivité et le bien-être des agents dans l'économie. Ces contrats stipulent que l'employé travaillant sous ceux-ci ne doit en aucun cas travailler pour un employeur concurrent; et ce pour une période déterminée allant de un à deux ans après séparation avec son premier employeur. Ce type de contrat est récurrent aux Etats-Unis et affecte au moins un employé sur cinq dans ce pays. Les résultats des analyses montrent qu'une forte incidence effective de ces contrats peut non seulement comprimer les salaires mais générer du chômage. Ceci est essentiellement dû au fait que certaines personnes ayant signé ce contrat ont du mal à se trouver un nouvel emploi après s'être séparées de leur premier travail. L'article propose de baisser la durée des restrictions d'emploi de ces contrats dans le but d'amoindrir leur effets sur les travailleurs. Cependant, il est à noter que ces contrats sont en partie bénéfiques du fait de l'incitation pour les employeurs de former les employés sur le marché du travail, augmentant la productivité totale. Parlant de contrats d'emploi, le deuxième chapitre évalue les implications de la coexistence de contrats dits temporaires (contrat à durée déterminée) et permanents (contrat à durée indéterminée) sur le flux des travailleurs entre chômage, emploi et non-participation au marché du travail durant le cycle de vie des agents. Cette analyse revêt une importance particulière du fait des effets de ces flux de travailleurs sur l'emploi agrégé et les salaires durant le cycle de vie des agents. Il en ressort que les transitions des individus d'un emploi permanent au chômage sont le plus important facteur expliquant l'emploi agrégé durant le cycle de vie des agents. Toute politique visant à augmenter l'emploi devrait cibler ce flux de travailleurs. Par ailleurs, la transition des individus d'un emploi temporaire vers le chômage se révèle être significatif dans l'explication du faible emploi des jeunes dans les pays européens comme la France, surtout pour ceux ayant un niveau d'éducation élevé. l'article va plus loin en construisant un model qui explique les profils de transitions observés durant le cycle de vie des agents et analyse comment les effets associés aux réformes de protection de l'emploi dans les pays européens sont distribués entre les travailleurs selon leur niveau d'éducation et âge. Enfin, le troisième chapitre jette un regard critique sur les politiques environnementales comme la taxe sur les émissions générées par les unités de production et le financement vert. L'article montre qu'en dépit de leur efficacité dans la réduction des émissions, ces politiques peuvent impacter négativement l'allocation des ressources comme le capital entre les firmes, réduisant la productivité agrégée. Ceci provient du fait que certaines entreprises très productives mais financièrement contraintes peuvent avoir des difficultés à investir dans la technologie de réduction de leurs émissions carbone alors que d'autres moins productives que les premières mais très riches, investissent plus facilement. Le poids du fardeau fiscal lié aux emissions force les premières à quitter le marché réduisant la productivité. Ceci suggère que d'autres politiques comme celle de subventions vertes sont importantes pour réduire ces potentielles distortions. / This thesis contributes to understanding labor market frictions and how these frictions impact macroeconomic aggregates such as unemployment and productivity. It also critically examines environmental policies such as carbon taxes and green financing. The first chapter examines how non-compete contracts signed between employers and employees affect unemployment, productivity, and welfare in the economy. These contracts stipulate that the employee, while under contract, cannot work for a competing employer for a specified period, typically ranging from one to two years after separation from their initial employer. This type of contract is widespread in the United States and affects at least one in five employees in the country. Results show that a high enforceable incidence of these contracts can compress wages and generate unemployment. This is primarily due to the fact that some individuals who have signed such contracts face difficulties in finding new employment after separating from their initial job. The article proposes reducing the duration of the post-employment restrictions of these contracts to mitigate their effects on workers. However, it is worth noting that these contracts partially benefit employers by incentivizing them to invest in employee training, thereby increasing overall productivity. Speaking of employment contracts, the second chapter evaluates the implications of the coexistence of temporary contracts (fixed-term contracts) and permanent contracts (indefinite-term contracts) on worker flows between unemployment, employment, and labor force non-participation over the life-cycle. This analysis is particularly important due to the effects of these flows on aggregate employment and wages over the life-cycle. It is found that transitions of individuals from permanent employment to unemployment are the most significant factor explaining aggregate employment over the life-cycle. Any policy aimed at increasing employment should target this flow of workers. Moreover, the transition of individuals from temporary employment to unemployment is significant in explaining the low employment of young individuals in European countries like France, especially for those with higher levels of education. The article goes further by constructing a model that explains the observed transition profiles during agents' life-cycle and analyzes how the effects linked to employment protection reforms in European countries are distributed among workers based on their level of education and age. Finally, the third chapter provides a critical assessment of environmental policies such as emissions taxes on production units and green financing. The article shows that despite their effectiveness in reducing emissions, these policies can negatively impact resource allocation, such as capital, among firms, thus reducing aggregate productivity. This is because some highly productive but seriously financially constrained firms may struggle to invest in emission reduction technology, while less productive but wealthy entrepreneurs invest more easily. The burden of emissions-related fiscal measures forces the former to exit the market, thereby reducing productivity. This suggests that other policies, such as green subsidies, are important to mitigate these potential distortions.