The availability of firm level data in international trade started a very quickly developing theoretical literature that focused on the micro evidence and understanding its implications for aggregate productivity and welfare. The new models were dealing with individual firm characteristics determining entry and exit from foreign markets and the different ways in which firms chose to enter. Two of the main features of this literature are that firms have heterogeneous productivities and need to pay a fixed costs in order to enter both their home and foreign markets. As a result, some do not find it optimal to export and it is those with higher productivity that do. This thesis is comprised of three theoretical papers (chapters) in which the models are with firms with heterogeneous productivities and there is steady state economic growth. The purpose in all three papers has been to generate results that are already established empirical facts but that have not been incorporated in the theoretical trade and growth literature. / Diss. Stockholm : Handelshögskolan i Stockholm, 2011

This paper examines the distributional effects of international trade in a general equilibrium model with heterogeneous agents and a welfare state redistributing income. The redistribution scheme is financed by a progressive income tax and gives the same absolute transfer to all individuals. Ceteris paribus, international trade leads to an increase in income per capita but also to higher income inequality on two fronts. Inter-group inequality between managers and workers increases, and intra-group inequality within the group of managers goes up as well. We show that for constant tax rates, there is an endogenous increase in the size of the welfare state that works against the increase in inequality, yet cannot offset it. The paper also sheds light on the conditions under which trade can actually lead to a Pareto improvement.

This paper investigates the effects of international trade in a general equilibrium model with heterogeneous firms where a welfare state redistributes income. We look at a very stylised progressive non-distortionary redistribution scheme. We show that for a given tax rate international trade increases income per capita, but also leads to higher income inequality. Two aspects of income inequality are examined. First, inter-group inequality between managers and workers is considered. Second, intra-group inequality within the group of managers is investigated. For a given tax rate the size of the welfare state and therefore the transfer per capita increases when going from autarky to trade. This second-round effect counteracts the primary increase in inequality, yet cannot outweigh it. Since the redistribution scheme is non-distortionary, it is possible to decrease trade-induced inequality by increasing the tax rate without jeopardising the gains from trade.

This paper examines the effects of a unilateral reform of the redistribution policy in an economy open to international trade. We set up a general equilibrium trade model with heterogeneous agents allowing for country asymmetries. We show that under international trade compared to autarky, a unilateral tax increase leads to a less pronounced decline in aggregate real income in the reforming country, while income inequality is reduced to a larger extent for sufficiently small initial tax rates. We highlight as a key mechanism a tax-induced reduction in the market size of the reforming country relative to its trading partner, resulting in a firm selection effect towards exporting. From the perspective of a non-reforming trading partner, the unilateral redistribution policy reform resembles a unilateral increase in trade costs leading to a deterioration of terms-of-trade and a decline in both aggregate real income and inequality.

This dissertation builds on Cezar and Escobar's (2015) study of the relationship between institutional distance and foreign direct investment (FDI), but focuses instead on the nexus between corruption distance and FDI. Along the lines of their study, this dissertation uses a two-stage gravity model derived from the framework of heterogeneous firms to empirically estimate the impact of corruption distance on the inward and outward FDI of European transition economies. This dissertation contributes to the literature in several aspects. First, it proposes a new method for measuring corruption distance, considering the importance of firms' previous experience to the development of necessary skills for navigating a foreign business environment. Second, the empirical study distinguished the impact of corruption distance on the extensive and intensive margin by using a rich dataset with three different corruption indices, which thereby differs from most previous studies on this topic. This is also one of the few papers that specifically study this topic in the context of European transition economies. The results show that both conventional and adjusted corruption distance based on the control-of-corruption index only reduces the extensive margin of transition economies' FDI; and that the magnitude of...

Cette thèse étudie l’impact des institutions, notamment les institutions financières, sur le commerce et les investissements internationaux. Les quatre premiers chapitres étudient les institutions financières et leur impact sur le commerce et la spécialisation internationale. Précisément, le premier chapitre étudie ces institutions et les déterminants de leur niveau de développement. Le deuxième chapitre analyse la façon dont la finance intervient sur le commerce bilatéral. Le troisième chapitre construit un modèle théorique qui vise à expliquer l’impact de la finance sur le commerce sectoriel en fonction du degré d’intensité financière de chaque secteur. Le quatrième chapitre analyse l’impact hétérogène de la finance sur les différents secteurs manufacturiers. Le dernier chapitre de la thèse utilise le terme “institution” dans un sens plus large et étudie théoriquement et empiriquement si les similitudes et différences dans les environnements institutionnels à travers les pays explique la distribution internationale des investissements directs étrangers (IDE). / This thesis examines the impact of institutions, especially the financial institutions, on international trade and foreign direct investments. The first four chapters study the financial institutions and their impact on trade and international specialization. Specifically, the first chapter examines these financial institutions and the determinants of their level of development. The second chapter examines how finance impacts bilateral trade. The third chapter builds a theoretical model and aims to explain the impact of finance on the sectoral trade as a function of the degree of financial intensity of each sector. The fourth chapter analyzes the heterogeneous impact of finance on the different manufacturing sectors. The last chapter of the thesis uses the term "institution" in a broader sense and studies theoretically and empirically whether the similarities and differences in institutional environments across countries explain the international patterns of foreign direct investment (FDI).

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This thesis examines the impact of institutions, especially the financial institutions, on international trade and foreign direct investments. The first four chapters study the financial institutions and their impact on trade and international specialization. Specifically, the first chapter examines these financial institutions and the determinants of their level of development. The second chapter examines how finance impacts bilateral trade. The third chapter builds a theoretical model and aims to explain the impact of finance on the sectoral trade as a function of the degree of financial intensity of each sector. The fourth chapter analyzes the heterogeneous impact of finance on the different manufacturing sectors. The last chapter of the thesis uses the term "institution" in a broader sense and studies theoretically and empirically whether the similarities and differences in institutional environments across countries explain the international patterns of foreign direct investment (FDI).

Diss. Stockholm : Handelshögskolan, 2006 S. 5-11: introduction and summary, s. 15-99: 3 papers

Cette thèse analyse les mesures non-tarifaires et les barrières au commerce et leurs liens avec les échanges internationaux. Dans le chapitre 1, j’étudie les objectifs derrière l’implémentation des mesures non-tarifaires sur différents produits dans plusieurs pays en développement. Au-delà des objectifs légitimes, plusieurs mesures répondent à des objectifs économiques et politiques. Le chapitre 2 propose une analyse théorique et empirique du rôle des normes de qualité sur les entreprises hétérogènes et la qualité moyenne des produits exportés. Conjointement avec Anne-Célia Disdier et Carl Gaigné, nous montrons que, dans un contexte d’asymétrie d’information, l’adoption des normes engendre la sortie des entreprises de très basse qualité (quelle que soit leur productivité) et des entreprises de haute qualité et à basse productivité. Alors que la qualité moyenne des produits n’est pas affectée de manière significative, l’impact varie largement à travers les secteurs. Le chapitre 3, une collaboration avec Evgenii Monastyrenko, analyse comment les exportateurs russes et leurs clients internationaux se partagent les risques et les coûts pendant le processus d’expédition, compte tenu de leur exposition à de nombreux obstacles. Ainsi, les grands importateurs en termes de taille et nombre de partenaires assument davantage de risques et de coûts. La probabilité que les importateurs subissent davantage de responsabilités est également plus élevée dans les transactions de biens intermédiaires. Enfin, les importateurs localisés dans un pays avec un environnement propice aux affaires sont moins susceptibles d’assumer des risques et des coûts. / This thesis tackles non-tariff measures and other trade-related barriers and their links to inter-national trade. In Chapter 1, I study the motivations behind the implementation of non-tariff measures on specific products in several developing countries. Beyond legitimate reasons, several measures appear to respond to economic and political motivations. Chapter 2 provides a theoretical and empirical analysis of the role of standard-like non-tariff measures on heterogeneous firms and the average quality of exported products. In this joint work with Anne-Célia Disdier and Carl Gaigné, we show that, under information asymmetry, the enforcement of standards induces the exit of very low-quality firms (regardless of their productivity), but also of high-quality low-productivity firms. While the overall average quality of exported products is not significantly affected, the impact varies significantly across sectors. Chapter 3, co-authored with Evgenii Monastyrenko, analyzes how Russian sellers and their international customers divide risks and costs throughout the shipping process, given their exposure to numerous barriers. Thus, big buyers in terms of size and number of connections appear to bear more risks and costs in international trade transactions. The probability that buyers take on more responsibilities is also higher for transactions of intermediate goods. Finally, when buyers are located in countries with a good business environment, they are less likely to take on responsibilities.