TY - JOUR
T1 - Which Companies Benefit form Liberalization?
T2 - A Study of the Influence of Initial Productivity
AU - Baghdasaryan, Delia
AU - la Cour, Lisbeth
AU - Schneider, Cédric
PY - 2016
Y1 - 2016
N2 - 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.
AB - 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.
KW - Firm productivity
KW - Trade liberalization
KW - Competition
KW - Initial productivity
KW - Firm productivity
KW - Trade liberalization
KW - Competition
KW - Initial productivity
U2 - 10.1007/s10842-015-0203-y
DO - 10.1007/s10842-015-0203-y
M3 - Journal article
SN - 1566-1679
VL - 16
SP - 101
EP - 125
JO - Journal of Industry, Competition and Trade
JF - Journal of Industry, Competition and Trade
IS - 1
ER -