UMD Theses and Dissertations
Permanent URI for this collectionhttp://hdl.handle.net/1903/3
New submissions to the thesis/dissertation collections are added automatically as they are received from the Graduate School. Currently, the Graduate School deposits all theses and dissertations from a given semester after the official graduation date. This means that there may be up to a 4 month delay in the appearance of a given thesis/dissertation in DRUM.
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Item Essays on Corporate Venture Capital, Firm Dynamics, and Aggregate Growth(2022) Liu, Yi; Haltiwanger, John; Stevens, Luminita; Economics; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)This dissertation studies the impact of corporate venture capital (CVC) on firm dynamics, innovation, and aggregate economic growth. In Chapter 1, I examine whether and how CVC enables funded young firms to rapidly grow, relative to the effect of traditional venture capital (TVC). I formalize the hypothesis that CVC can improve young firm outcomes through demand and/or technology spillovers using a simple model of VC financing and young firm innovation. To test the hypothesis, I assemble a micro-level dataset that links each U.S. VC-funded firm to its funder(s) and subsequent patenting and exit outcomes. To address endogenous investment relationships and to separately identify the causal effects of CVC and TVC in the presence of CVC-TVC syndication, I employ a shift-share research design that predicts both forms of investment at the industry level using the interaction of the initial market shares of different funders and several instruments for funder-specific supply shifts. My estimates reveal that the effect of CVC is as large as the effect of TVC. Moreover, the effect of CVC is found to be stronger when the funded firm is upstream with respect to the CVC funder in the Input-Output matrix and downstream in the patent citation matrix, lending support to the hypothesized demand and technology channels of CVC. Chapter 2 investigates the effect of CVC on one form of strategic payoffs to funding firms: corporate innovation. I construct and analyze a micro-level dataset that links CVC investments to U.S. publicly traded firms and their patenting activities. I track the funding firms before and after starting CVC, in comparison to a group of control firms defined by firm size, age, industry, and prior growth. I find that CVC leads to an increase in patenting rate at the funding firms. Importantly, much of the effect is driven by smaller-sized funding firms, informing the potential relationship between CVC and internal innovation across the firm size distribution. Chapter 3 explores the implications of CVC for aggregate economic outcomes. I develop a growth model featuring CVC and endogenous firm innovation that is consistent with a set of facts on U.S. CVC, including (i) the selection of large and highly innovative firms into making CVC investment and (ii) positive treatment effects associated with CVC on both the funded and funding firms, measured by innovation outcomes. In equilibrium, firms engaged in CVC benefit from positive treatment that makes them innovate more, whereas other firms reduce innovation as they face more intense competition. These forces in turn affect firm selection and the incentives for new entrepreneurship. Quantitative analysis suggests that a higher level of CVC activity leads to an overall increase in aggregate growth, a fall in entry, and a fattening of the firm size distribution at both tails.Item ESSAYS ON CAPITAL FLOWS IN DEVELOPING COUNTRIES(2018) Matsumoto, Hidehiko; Saffie, Felipe; Economics; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)In the first chapter, I develop a quantitative small-open-economy model to assess the optimal pace of foreign reserve accumulation by developing countries. The model features endogenous growth with foreign direct investment (FDI) entry and sudden stops of capital inflows to incorporate benefits of reserve accumulation. Reserve accumulation depreciates the real exchange rate and attracts FDI, which endogenously promotes productivity growth. When a sudden stop happens, the government uses accumulated reserve to prevent a severe economic downturn. The calibrated model shows that two factors are the key determinants of the optimal pace of reserve accumulation: the elasticity of the foreign borrowing spread with respect to debt, and the entry cost for FDI. The model suggests that these two factors can explain a substantial amount of the cross-country variation in the observed pace of reserve accumulation. The second chapter is a joint work with Felipe Saffie. In this chapter, we develop a small-open-economy model with endogenous firm and trade dynamics. Aggregate productivity of the economy increases through new firm entry and incumbent firms' innovation. Firms invest in two types of innovation: innovation to acquire new product lines, and innovation to start exporting their products. These innovation activities determine the extensive margins of imports and exports. The economy is also subject to sudden stops of capital inflows. The model can capture some of the empirical regularities of firm and trade dynamics during sudden stops: firms' innovation drops sharply, which causes a persistent decline in productivity and output; imports of goods decline substantially, while exports are almost unaffected; profits for exports increase due to a large real depreciation and lower production cost; the extensive margin of exports gradually expands after sudden stops. The model provides a tractable framework to study optimal capital policies in the context of endogenous firm and trade dynamics.Item A Micro-Level Examination of the Impact of Rail Transit Investments on the Patterns of Firm Dynamics(2018) Saeed, Basheer A.; Iseki, Hiroyuki; Urban and Regional Planning and Design; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)Transit-oriented development has been increasingly implemented at stations of both existing and new fixed transit systems across the U.S. to stimulate local economy and create livable communities. A common belief among planners in favor of transit-oriented development is that the provision of passenger rail systems promotes urban development around rail stations. There is a lack of empirical evidence, however, that supports this presumption. To address the gap in relevant literature, this dissertation examines the impact of passenger rail stations on the four different patterns of firm dynamics in the State of Maryland—firm birth and inward relocation as positive impacts, and firm closure and outward relocation as negative impacts. This dissertation uses both standard and propensity-score-weighted negative binomial regression methods to analyze the dependent variables of firm dynamics constructed from the National Establishment Time Series (NETS) panel data of the State of Maryland from 1990 to 2010. By examining both positive and negative impacts of firm dynamics, this dissertation estimates the likelihood of firm retainment and net relocation for areas in proximity of the passenger rail stations, while controlling for a number of potentially confounding factors. Positive and statistically significant relationships are found between proximity to the passenger rail stations and the rates of firm births and inward relocating firms in Maryland, regardless of differences in the level of maturity of stations. From 1990 to 2010, the areas of passenger rail stations in Maryland experienced a wide range of rates of growth in firm density, depending on the year of station opening. The results of the four different patterns of firm dynamics suggest that areas near passenger rail stations gain belated economic benefits, well after the introduction of rail stations, shown by higher likelihood of firm retainment and net relocation around the mature rail stations opened before 1990. In comparison, areas near the less mature stations that opened after 1990 had predominantly lower likelihood of firm retainment and net firm relocation. Planners and policymakers should be proactive in directing development near rail stations by adopting a variety of measures and policies that support or at least consistent with transit-oriented development.