Firm dynamics

• Financial Distress and Hedging: Evidence from Canadian Oil Firms

  Staff Discussion Paper 2019-4 Kun Mo, Farrukh Suvankulov, Sophie Griffiths

  The paper explores the link between financial distress and the commodity price hedging behaviour of Canadian oil firms.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Financial markets, Firm dynamics JEL Code(s): G, G3, G32, Q, Q4, Q40

• Firm-level Investment Under Imperfect Capital Markets in Ukraine

  Staff Working Paper 2019-14 Oleksandr Shcherbakov

  This paper develops and estimates a model of firm-level fixed capital investment when firms face borrowing constraints.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Economic models, Firm dynamics JEL Code(s): C, C6, C61, C63, D, D2, D24, G, G3, G31
• April 8, 2019

  Why Do Central Banks Care About Market Power?

  Presentation Carolyn A. Wilkins G7 conference hosted by Banque de France Paris, France

  Senior Deputy Governor Carolyn A. Wilkins discusses how the competitive landscape and digitalization affect monetary policy and why central banks care about market power.

  Content Type(s): Press, Speeches and appearances, Presentations Research Topic(s): Firm dynamics, Inflation and prices, Labour markets, Market structure and pricing, Monetary policy transmission, Potential output, Productivity, Service sector
• January 31, 2019

  Making cents of wages

  

  Russell Barnett, José Dorich

  Ever wonder how your wages are determined? You’re not the only one who cares about your wages. At the Bank of Canada, we care about them a lot too.

  Content Type(s): Publications, The Economy, Plain and Simple Research Topic(s): Business fluctuations and cycles, Firm dynamics, Labour markets, Productivity

• Can Capital Deepening Explain the Global Decline in Labor’s Share?

  Staff Working Paper 2019-3 Andrew Glover, Jacob Short

  We estimate an aggregate elasticity of substitution between capital and labor near or below one, which implies that capital deepening cannot explain the global decline in labor's share. Our methodology derives from transition paths in the neo-classical growth model.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Firm dynamics, International topics, Labour markets JEL Code(s): E, E1, E13, E2, E22, E25, J, J3

• Financial Development Beyond the Formal Financial Market

  Staff Working Paper 2018-49 Lin Shao

  This paper studies the effects of financial development, taking into account both formal and informal financing. Using cross-country firm-level data, we document that informal financing is utilized more by rich countries than poor countries.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial markets, Firm dynamics, Productivity JEL Code(s): E, E4, E44, O, O1, O17, O4, O47

• Market Size and Entry in International Trade: Product Versus Firm Fixed Costs

  Staff Working Paper 2018-43 Walter Steingress

  This paper develops a theoretical framework to infer the nature of fixed costs from the relationship between entry patterns in international markets and destination market size. If fixed costs are at the firm level, firms take advantage of an intrafirm spillover by expanding firm-level product range (scope).

  Content Type(s): Staff research, Staff working papers Research Topic(s): Firm dynamics, International topics, Trade integration JEL Code(s): F, F1, F12, F14, F2, F23

• The Extensive Margin of Trade and Monetary Policy

  Staff Working Paper 2018-37 Yuko Imura, Malik Shukayev

  This paper studies the effects of monetary policy shocks on firms’ participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered across firms and time.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Economic models, Firm dynamics, International topics, Monetary policy JEL Code(s): E, E5, E52, F, F1, F12, F4, F44

• Does Outward Foreign Investment Matter for Canadian Productivity? Evidence from Greenfield Investments

  Staff Working Paper 2018-31 Naveen Rai, Lena Suchanek, Maria Bernier

  This paper seeks to understand how outward foreign direct investment (FDI) affects the productivity of Canadian firms. We estimate the impact of outward greenfield investment on measures of firm-level productivity using FDI data from roughly 2,000 Canadian firms and more than 4,000 outward FDI projects over the 2003–14 period.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Firm dynamics, Productivity JEL Code(s): D, D2, D24, F, F2, F21, F23

• The Scale and Scope of Online Retail

  Staff Analytical Note 2018-19 Alex Chernoff

  This paper studies the growth of online retail over the period 1999–2012, using confidential firm-product-level data for Canada. The revenue of online retailers is decomposed into the contributions of product scope (the number of product categories) and product scale (average revenue per product category).

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Digital currencies and fintech, Firm dynamics, International topics JEL Code(s): D, D2, D22, L, L1, L11, L8, L81