Productivity

• Firms Dynamics, Bankruptcy Laws and Total Factor Productivity

  Staff Working Paper 2007-17 Hajime Tomura

  This paper analyzes endogenous fluctuations in total factor productivity (TFP) in a dynamic general equilibrium model with heterogeneous agents, and illustrates the interaction of credit market frictions, asset prices, the entry and exit of firms, and fluctuations in TFP in response to firm-level productivity and aggregate credit-market shocks. I also analyze the effect of bankruptcy and foreclosure laws on fluctuations in TFP through their effect on credit market frictions.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, Productivity JEL Code(s): D, D2, D24, E, E4, E44, G, G3, G33

• Exporting and FDI with Endogenous Productivity

  Staff Working Paper 2007-14 Oana Secrieru, Marianne Vigneault

  This paper provides an analysis of how a firm’s decision to serve a foreign market by exporting or by engaging in foreign direct investment (FDI) affects firm productivity, when productivity is endogeneous as a function of training. The main result of our paper is that, with endogeneous productivity, exporting results in lower productivity than does FDI, but exporting may result in higher or lower employment and output than does FDI.

  Content Type(s): Staff research, Staff working papers Topic(s): International topics, Labour markets, Productivity JEL Code(s): F, F2, F22, F23