Which Companies Benefit form Liberalization? A Study of the Influence of Initial Productivity

Delia Baghdasaryan, Lisbeth la Cour, Cédric Schneider

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Abstrakt

Theoretical research shows that competition has positive effects on productivity, for companies that are initially efficient, but not for unproductive firms. Our empirical analysis on a panel data of Czech companies, years 1995–2004, confirms this result. In addition, our analysis shows that when economic reforms affect both domestic and foreign competition, controlling for domestic competition is crucial when assessing the impact of trade liberalization.
Otherwise, the effect of trade liberalization on firm productivity is upward biased.
OriginalsprogEngelsk
TidsskriftJournal of Industry, Competition and Trade
Vol/bind16
Udgave nummer1
Sider (fra-til)101-125
Antal sider25
ISSN1566-1679
DOI
StatusUdgivet - 2016

Emneord

  • Firm productivity
  • Trade liberalization
  • Competition
  • Initial productivity

Citationsformater