Search

We examine the gains from globalization in the presence of firm heterogeneity and potential resource misallocation. We show theoretically that without distortions, bilateral and export liberalizations increase aggregate welfare and productivity, while import liberalization has ambiguous effects. Resource misallocation can either amplify, dampen or reverse the gains from trade. Using model-consistent measures and unique new data on 14 European countries and 20 industries in 1998-2011, we empirically establish that exogenous shocks to export demand and import competition both generate large aggregate productivity gains. Guided by theory, we provide evidence consistent with these effects operating through reallocations across firms in the presence of distortions: (i) Both export and import expansion increase average firm productivity, but the former also shifts activity towards more productive firms, while the latter acts in reverse. (ii) Both export and import exposure raise the productivity threshold for survival, but this cut-off is not a sufficient statistic for aggregate productivity. (iii) Efficient institutions, factor and product markets amplify the gains from import competition but dampen those from export access.

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.; 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.

Drawing from confidential firm-level balance sheets in 11 European countries, the paper presents a novel sectoral database of comparable productivity indicators built by members of the Competitiveness Research Network (CompNet) using a newly developed research infrastructure. Beyond aggregate information available from industry statistics of Eurostat or EU KLEMS, the paper provides information on the distribution of firms across several dimensions related to competitiveness, e.g. productivity and size. The database comprises so far 11 countries, with information for 58 sectors over the period 1995-2011. The paper documents the development of the new research infrastructure, describes the database, and shows some preliminary results. Among them, it shows that there is large heterogeneity in terms of firm productivity or size within narrowly defined industries in all countries. Productivity, and above all, size distribution are very skewed across countries, with a thick left-tail of low productive firms. Moreover, firms at both ends of the distribution show very different dynamics in terms of productivity and unit labour costs. Within-sector heterogeneity and productivity dispersion are positively correlated to aggregate productivity given the possibility of reallocating resources from less to more productive firms. To this extent, we show how allocative efficiency varies across countries, and more interestingly, over different periods of time. Finally, we apply the new database to illustrate the importance of productivity dispersion to explain aggregate trade results.

Drawing from confidential firm-level balance sheets in 11 European countries, the paper presents a novel sectoral database of comparable productivity indicators built by members of the Competitiveness Research Network (CompNet) using a newly developed research infrastructure. Beyond aggregate information available from industry statistics of Eurostat or EU KLEMS, the paper provides information on the distribution of firms across several dimensions related to competitiveness, e.g. productivity and size. The database comprises so far 11 countries, with information for 58 sectors over the period 1995-2011. The paper documents the development of the new research infrastructure, describes the database, and shows some preliminary results. Among them, it shows that there is large heterogeneity in terms of firm productivity or size within narrowly defined industries in all countries. Productivity, and above all, size distribution are very skewed across countries, with a thick left-tail of low productive firms. Moreover, firms at both ends of the distribution show very different dynamics in terms of productivity and unit labour costs. Within-sector heterogeneity and productivity dispersion are positively correlated to aggregate productivity given the possibility of reallocating resources from less to more productive firms. To this extent, we show how allocative efficiency varies across countries, and more interestingly, over different periods of time. Finally, we apply the new database to illustrate the importance of productivity dispersion to explain aggregate trade results. JEL Classification: L11, L25, D24, O4, O57