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

Delia Baghdasaryan, Lisbeth la Cour, Cédric Schneider

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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.
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.
LanguageEnglish
JournalJournal of Industry, Competition and Trade
Volume16
Issue number1
Pages101-125
Number of pages25
ISSN1566-1679
DOIs
StatePublished - 2016

Keywords

  • Firm productivity
  • Trade liberalization
  • Competition
  • Initial productivity

Cite this

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abstract = "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.",
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Which Companies Benefit form Liberalization? A Study of the Influence of Initial Productivity . / Baghdasaryan, Delia; la Cour, Lisbeth; Schneider, Cédric.

In: Journal of Industry, Competition and Trade, Vol. 16, No. 1, 2016, p. 101-125.

Research output: Contribution to journalJournal articleResearchpeer-review

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AU - Schneider,Cédric

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KW - Trade liberalization

KW - Competition

KW - Initial productivity

KW - Firm productivity

KW - Trade liberalization

KW - Competition

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