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Which Companies Benefit from Liberalization? a Study of the Influence of Initial Productivity

Author

Listed:
  • Delia Baghdasaryan

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

  • Lisbeth Funding La Cour

    (Department of Economics - Copenhagen Business School)

  • Cédric Schneider

    (Department of Economics - Copenhagen Business School)

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.

Suggested Citation

  • Delia Baghdasaryan & Lisbeth Funding La Cour & Cédric Schneider, 2016. "Which Companies Benefit from Liberalization? a Study of the Influence of Initial Productivity," Post-Print hal-01570304, HAL.
    • Handle: RePEc:hal:journl:hal-01570304
    DOI: 10.1007/s10842-015-0203-y
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    Cited by:

    1. Wen Yue, 2022. "Foreign direct investment and the innovation performance of local enterprises," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-9, December.

    More about this item

    Keywords

    economic competition; enterprises firms businesses; Initial productivity; Firm productivity; Trade liberalization; Competition; productivité; concurrence économique; compétitivité des entreprises; libéralisation commerciale; entreprise;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F10 - International Economics - - Trade - - - General

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