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Services reform and downstream economy-wide performance: The case of Bulgaria

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  • van der Marel, Erik
  • Sáez, Sebastián
  • Doemeland, Dörte

Abstract

This paper provides new evidence on the impact of services sector reforms on domestic firm productivity. It extends the previous literature on this topic by using firm-level data from Bulgaria, by developing an up-to-date TFP measure, and by taking stock of the downstream performance of the entire economy, covering goods as well as services firms. The results show that indeed services reform are an important driver for the wider downstream economy, particularly reforms in electricity, insurance and telecom. More importantly, a novel issue is that the results also show that sheer competition in services markets also forms a significant determinant for downstream firm TFP.

Suggested Citation

  • van der Marel, Erik & Sáez, Sebastián & Doemeland, Dörte, 2016. "Services reform and downstream economy-wide performance: The case of Bulgaria," Economics Letters, Elsevier, vol. 149(C), pages 60-63.
    • Handle: RePEc:eee:ecolet:v:149:y:2016:i:c:p:60-63
    DOI: 10.1016/j.econlet.2016.09.027
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    References listed on IDEAS

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    1. Arnold, Jens M. & Javorcik, Beata S. & Mattoo, Aaditya, 2011. "Does services liberalization benefit manufacturing firms?: Evidence from the Czech Republic," Journal of International Economics, Elsevier, vol. 85(1), pages 136-146, September.
    2. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    3. Chang-Tai Hsieh & Peter J. Klenow, 2014. "The Life Cycle of Plants in India and Mexico," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1035-1084.
    4. Jens Matthias Arnold & Beata Javorcik & Molly Lipscomb & Aaditya Mattoo, 2016. "Services Reform and Manufacturing Performance: Evidence from India," Economic Journal, Royal Economic Society, vol. 126(590), pages 1-39, February.
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    Cited by:

    1. Yang, Zhenbing & Shao, Shuai & Xu, Lili & Yang, Lili, 2022. "Can regional development plans promote economic growth? City-level evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 83(C).

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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