Services Liberalization and Productivity of Manufacturing Firms: Evidence from Ukraine
42 Pages Posted: 20 Apr 2016
Date Written: January 1, 2012
Abstract
This paper brings new evidence on the impact of services liberalization on the performance of manufacturing firms. Using a unique database of Ukrainian firms in 2001-2007, the authors utilize an external push for liberalization in the services sector as a source of exogenous variation to identify the impact of services liberalization on total factor productivity (TFP) of manufacturing firms. The results indicate that a standard deviation increase in services liberalization is associated with a 9 percent increase in TFP. Allowing services liberalization to dynamically influence TFP through the investment channel leads to an even larger effect. The effect is robust to different estimation methods and to different sub-samples of the data. In particular, it is more pronounced for domestic and small firms.
Keywords: Economic Theory & Research, E-Business, Emerging Markets, ICT Policy and Strategies, Public Sector Corruption & Anticorruption Measures
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
The Internationalization of Financial Services in Asia
By Stijn Claessens and Thomas Glaessner
-
Measuring Services Trade Liberalization and its Impact on Economic Growth: An Illustration
By Aaditya Mattoo, Randeep Rathindran, ...
-
Quantifying the Impact of Services Liberalization in a Developing Country
By Denise Eby Konan and Keith E. Maskus
-
International Provision of Trade Services, Trade, and Fragmentation
-
Assessing the Impact of Communication Costs on International Trade
By Carsten Fink, Aaditya Mattoo, ...
-
Services Policy Reform and Economic Growth in Transition Economies, 1990-2004
By Felix Eschenbach and Bernard Hoekman
-
Services Policy Reform and Economic Growth in Transition Economies, 1990-2004
By Felix Eschenbach and Bernard Hoekman