Learning, Incomplete Contracts and Export Dynamics: Theory and Evidence from French Firms

We consider a model where exporting requires finding a local partner in each market. Contracts are incomplete and exporters must learn the reliability of their partners through experience. In the model, export behavior is state-dependent due to matching frictions, although there are no sunk costs. Better legal institutions alleviate contracting frictions especially in sectors with large contracting problems. Thus, measures of legal quality help reduce the risk that a match between an exporter and a local distributor splits, and they are all the more effective in sectors that are more exposed to hold-up problems. Moreover, the breaking risk declines with the age of the relationship, as unreliable partners are weeded out. We find strong evidence in favor of the model's predictions when testing them with a French dataset that includes information on firm-level exports by destination country.Trade Dynamics, Learning, Incomplete Contracts, State dependence, Firm-level Trade Data

Intravenous iron increases labile serum iron but does not impair forearm blood flow reactivity in dialysis patients

Intravenous iron increases labile serum iron but does not impair forearm blood flow reactivity in dialysis patients.BackgroundThere are concerns about adverse vascular effects of intravenous iron by inducing oxidative stress. We therefore examined the effect of a single high dose of intravenous iron on endothelial function and biochemical markers of iron homeostasis.MethodsIn a randomized, placebo-controlled, double-blind, parallel-group study, forearm blood flow (FBF) was assessed by strain-gauge plethysmography in 38 peritoneal dialysis patients before and after a single intravenous infusion of 300mg iron sucrose.ResultsIron infusion increased total (Δ 601 μg/100mL, CI 507, 696) and non-transferrin-bound iron (Δ 237.2 μmol/L, CI 173.6, 300.8) approximately 10-fold, as well as redox-active iron nearly five-fold (Δ 0.76 μmol/L, CI 0.54, 0.98). After iron infusion basal FBF was 59% higher than after placebo. FBF response to acetylcholine before and after iron infusion was 263 ± 32% and 310 ± 33%, corresponding to 304 ± 43% and 373 ± 29% in the placebo group, respectively. Before and after iron or placebo infusion, glyceryl-trinitrate increased resting FBF to 232 ± 22% and 258 ± 21% in the iron group, and to 234 ± 18% and 270 ± 30% in the placebo group. L-N-monomethyl-arginine decreased FBF to 70 ± 4% and 72 ± 3% before and after iron, and to 74 ± 4% and 73 ± 4% before and after placebo infusions, respectively. Despite higher basal FBF after iron infusion, absolute and relative FBF changes in response to vasoactive substances were not significantly different between iron and placebo groups.ConclusionOur data suggest that 300mg intravenous iron sucrose has a vasodilatory effect, but does not impair vascular reactivity in dialysis patients, despite a significant increase in non-transferrin-bound and redox-active iron

Talents from Abroad. Foreign Managers and Productivity in the United Kingdom.

In this paper, we test the contribution of foreign management on firms’ competitiveness. We use a novel dataset on the careers of 165,084 managers employed by 13,106 companies in the United Kingdom in the period 2009-2017. We find that a domestic manufacturing firm becomes on average between 9% and 12% more productive after hiring at least one foreign manager. Interestingly, productivity gains by domestic firms after recruiting foreign managers are similar in magnitude to gains after foreign acquisitions as from previous literature. Eventually, we do not find significant gains by foreign-owned firms hiring foreign managers. Our identification strategy combines difference-in-difference and matching techniques to challenge reverse causality. We proxy firms’ competitiveness either by total factor productivity or by technical efficiency derived from stochastic frontier analyses. Eventually, we argue that limits to the circulation of talents, as for example in case of a Brexit event, may hamper the allocation of labor productive resources

Data for: Learning, incomplete contracts and export dynamics: Theory and evidence from French firms

Abstract of associated article: Using French firm-level trade data, we provide empirical support for a heterogenous firm model in which exporting requires finding a local partner in each market. In the model, contracts are incomplete, exporters must learn the reliability of their partners through experience and export behaviour is state-dependent due to matching frictions. As predicted by our theoretical model, we find that better legal institutions alleviate contracting frictions especially in sectors with large contracting problems, thereby increasing state dependence more in those sectors. Finally, hazard rates depend on the quality of local legal institutions and decline with the age of the relationship, as unreliable partners are weeded out

Robot Imports and Firm-Level Outcomes

We use French data over the 1994-2013 period to study how imports of industrial robots affect firm-level outcomes. Guided by a simple model, we develop a novel empirical strategy to identify the causal effects of robot adoption. Our results suggest that, while demand shocks generate a positive correlation between robot imports and employment at the firm level, exogenous exposure to automation leads to job losses. We also find that robot exposure increases labour productivity and some evidence that it may raise the relative demand for high-skill professions

Structural Development Accounting

We construct and estimate a unified model combining three of the main sources of cross-country income disparities: differences in factor endowments, barriers to technology adoption and the inappropriateness of frontier technologies to local conditions. The key components are different types of workers, distortions to capital accumulation, directed technical change, costly adoption and spillovers from the world technology frontier. Despite its parsimonious parametrization, our empirical model provides a good fit of GDP data for up to 86 countries in 1970 and 122 countries in 2000. Removing barriers to technology adoption would increase the output per worker of the average non-OECD country relative to the US from 0.19 to 0.61, while increasing skill premia in all countries. Removing barriers to trade in goods amplifies income disparities, induces skill-biased technology adoption and increases skill premia in the majority of countries. These results are reverted if trade liberalization is coupled with international IPR protection

Firms and the Global Crisis: French Exports in the Turmoil

Global trade contracted quickly and severely during the global crisis. This paper, using a unique dataset of French firms, matching together export data with firm-level credit constraints, shows that most of the 2008-2009 trade collapse is accounted by the unprecedented demand shock and by product characteristics. While all firms have been evenly affected by the crisis, large firms did so mainly through the intensive margin and by reducing the portfolio of products offered in each destination served. Smaller exporters instead have been forced to reduce the range of destinations served or to stop exporting altogether. Credit constraints, on their part, emerged as an aggravating factor for firms active in sectors of high financial dependence. Nonetheless, as the share of credit constrained firms is small and their number did not increase much during the crisis, the overall impact of credit constraints on trade remains limited