Research

My research interests lie in the intersection of development economics, international trade, and political economics. My empirical works use techniques from industrial organization, finance, and applied econometrics. Overall, my current research examines the constraints to firm performance and the link between trade shocks and rural poverty in developing countries.

JOB MARKET PAPER (JMP_NTraore)

“Temperatures, Productivity, and Firm Competitiveness in Developing Countries: Evidence from Africa”

Abstract

Characterizing the relationship between temperatures and overall economic productivity remains a key challenge in the study of the economic effects of climate change. While some studies have attempted to explain the micro mechanisms behind the established negative effect of temperatures on aggregate output, how such effect takes place and its implications for firms in developing countries need further explanation. This paper examines the relationship between temperatures and firm productivity and competitiveness, by using detailed production data from manufacturing, service, and agricultural firms in Cote d’Ivoire. To guide our empirical work, we introduce climate mitigation technology choice into a model of trade with heterogeneous firms. An empirical test of the model shows that increased temperatures leads to lower firm revenues, profits, and survival rate. In addition, our empirical results suggest a negative relationship between daily temperatures and three key firm performance measures: total factor productivity, labor and capital productivity. Finally, we find a lower effect of temperatures on firms that can invest in climate mitigation technology. These findings show how higher temperatures in developing countries translate to decreased competitiveness, thus highlighting a newly measured cost of climate change.

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