Abstract:
This dissertation investigates the implications of frictions in labor and financial markets, with a focus on developing economies. Through theoretical and empirical analyses, I first analyze the effects of a large informal labor sector on labor policies and outcomes. I then provide evidence on the effects of access to credit on export performance measured along the extensive and intensive margins of trade. Lastly, I study the implications of various finance measures at the country level on export quality upgrading. The results highlight the importance of policies that promote financial soundness at the macroeconomic level.