Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms
The paper studies the effects of liberalization of imports and foreign direct investment on Russian firms. Using the firm-level data from 1995-2001, this paper finds that competition with imports and with FDI exerts a positive effect on domestic firms. This effect is weaker in the case of firms located in complex industries. Increased availability of imported inputs help to improve productivity of domestic firms in the mid-1990s, although the devaluation of the ruble in 1998 temporarily made firms that relied on foreign-produced inputs less competitive. Finally, entry of foreign-owned firms in post-crisis period leads to improvement in TFP of their Russian suppliers.
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- Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 20-43, July.
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- Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.