Firms play a critical role in mediating the effects of trade on the economy through the flow of goods and services. The new detailed data on firms, products, and trade will allow us to ask important questions about firms engaged in trade and investment.

 

Measuring Trade in Value‐Added with Firm‐level Data

Ken Kikkawa

Assistant Professor, UBC Sauder School of Business

Global Value Chains have been central in economic policy debates. Yet a key concept-trade in value added-is likely mis‐measured because of aggregation bias stemming from the reliance on sectoral input‐output tables. Study will use Belgian administrative data on domestic firm‐to‐firm sales to study this bias.

 

Nepotism, Need, and Negligence: Why do so many firms in Africa hire kin?

Jamie McCasland

Assistant Professor, Vancouver School of Economics

A large share of employees in African firms are non-household relatives of the owner. This project will test the hypothesis that firm owners hire kin to provide economic support to family despite being less productive than non-kin using a large scale Universal Basic Income project in Kenya. This is first study of its kind to identify a “shock” to kinship taxation rates.

 

Kinship Taxation and Firm Growth: Experimental Evidence from Tanzania

Munir Squires

Assistant Professor, Vancouver School of Economics

Requests from extended family for financial support are pervasive for successful African entrepreneurs, and evidence suggests some go to great lengths to avoid them. One way to avoid fulfilling such requests is by simply limiting the scale of one’s business. This study aims to estimate the extent of this behavior and its cost, using a combination of lab and field experiment in Tanzania.

 

On the boundary of the firm: Firm-to-firm production network data combined with employer-employee data

Ken Kikkawa

Assistant Professor, UBC Sauder School of Business

This project will analyze the boundary of the firm and provide a view of production that is integrated over all suppliers of the firm and over all workers of the suppliers by combining two datasets in Belgium.

 

Cross-Border Intra-Firm Trade and the Propagation of Idiosyncratic Shocks

Vanessa Alviarez

Assistant Professor, UBC Sauder School of Business

The goal of this project is to study how ownership linkages in international production networks affect the transmission of trade shocks which was highlighted during the recent turbulent renegotiation of NAFTA.

 

Understanding the Relationship between Credit Ratings of Firms and the Credit Risk of their Banks

Rajesh Vijayaraghavan

Assistant Professor, UBC Sauder School of Business

Aim of this proposal is to find the relationship between credit risk information disclosed in the financial statements of banks, and credit ratings of the firms that they have a lending relationship.

 

Unpacking costs of switching sectors

Tomasz Swiecki

Assistant Professor, Vancouver School of Economics

Black-box costs of switching sectors denoted in utility terms are frequently used to rationalize observed differences in residual wages across sectors. Machine learning techniques will be used to detailed household survey data to find patterns associated with restricted worker mobility. These results will inform follow-up research developing a model with endogenous switching costs.

 

Worker effort and kinship taxation: Experimental evidence from the DRC

Munir Squires

Assistant Professor, Vancouver School of Economics

The ability of firms to incentivize effort may be limited if their workers are `taxed’ by their kin. Evidence from field experiments suggests that unlike in developed countries, workers in developing countries are unresponsive to incentive pay. This study will provide the first direct measure in a natural setting of the costs of this type of distortion, ‘kinship taxation’.