Université Paris 1 Panthéon-Sorbonne Master 2 Development Economics
« Labour and Environmental Regulations and Multinational Firms » Rémi Bazillier
Exercice 1 (4 points)
1. What can you say about the size distribution of firms in developing countries and what are the potential explanations? (2 points)
2. The following table is from Sleuwaegen and Goedhuys (2002, JDE) on firms in Ivory Coast.
The authors conclude that learning effects seem to be at work and that the startup size has an important effect on the subsequent growth of firms. Explain why we can say that based on the previous regressions results. (2 points)
Exercice 2 (4 points)
This figure is taken from Bloom et al. (2013, QJE) from a randomized experiment on Indian firms.
1. Explain the design of the experiment and how the authors identify the causal effect of management on total factor productivity. (3 points)
2. In India, we observe a persistent thick tail of badly managed firms. Can you explain why? (1 point)
Exercice 3 (7 points)
The following table is from Rezza (2014, EDE).
1. Based on that table, what can you say about the empirical evidence related to the pollution haven hypothesis?
(3 points)
2. If estimates reject the PHH, which theory may explain the relation between firms location and environmental regulations? (2 points).
3. Is the likelihood to observe the PHH higher when we focus on pollution-intensive industries? Explain why. (2 points)
Exercice 4 (5 points):
1. What are the main drivers of labor regulations according to Botero et al. (2004) (2 points)
2. The following table is from Mayneris et al. (2016). This paper studies the effect of the 2004 minimum wage reform in China which has extended the coverage and enforcement of minimum wage. Summarize the results.
(3points)
