Essays on the impact of international trade and labor regulation on firms

Essais sur l'impact du commerce international et de la réglementation du travail sur les entreprises

Gabriel Smagghue ()
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Gabriel Smagghue: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique

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Abstract: Recent literature in international economics and macroeconomics has pointed to the major role played by large firms in shaping aggregate economic outcomes. Large firms influence, inter alia, economic fluctuations, performance on export markets and inequalities between workers and between consumers. It is therefore crucial to understand how large firms emerge and behave. In the present thesis, I look at three independent aspects of this question. First, I study how exporting firms adjust the quality of the products they export in response to an intensification of "low-cost" competition in foreign markets. To this end, I develop a new method to estimate the quality of products at the firm-level and I find evidence that firms upgrade quality in response to "low-cost" competition. Second, I investigate the way exporting firms adjust their sales when a demand shock (e.g. an economic recession, a war) occurs in one of their destinations. In the context of the Champagne wine industry during the 2000-2001 economic recession, I show that firms reallocate their sales toward markets where demand conditions are relatively more favorable. Lastly, I look at the way firms adjust their size and their mix of capital and labor in response to labor regulations which are more binding to large firms. I find that firms shrink and substitute capital for labor to mitigate the labor cost of the regulation. At the aggregate level, preliminary results suggests that workers gain from the regulation while capital owners lose.

Keywords: Firm-level data; Size-dependent regulation; Quality; Exporting firms; Réglementation dépendante de la taille; Données de firmes; Qualité; Firmes exportatrices (search for similar items in EconPapers)
Date: 2014-07-03
Note: View the original document on HAL open archive server: https://theses.hal.science/tel-03512807v1
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Published in Economics and Finance. Institut d'études politiques de paris - Sciences Po, 2014. English. ⟨NNT : 2014IEPP0022⟩

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