Did EU accession improve efficiency of firms from transitional countries?

Jenifer Piesse (), Dragana Radicic and Allan Webster ()
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Jenifer Piesse: Bournemouth University and University of Stellenbosch
Allan Webster: Bournemouth University, Executive Business Centre

No BAFES03, BAFES Working Papers from Department of Accounting, Finance & Economic, Bournemouth University

Abstract: This empirical study examines the effect of EU accession on firm efficiency in a sample of 27 transitional countries using data from the 2005 and 2013 BEEPS surveys. Using stochastic frontier analysis and a separate propensity score matching approach it finds a statistically significant association between EU membership and firm performance in both cross-sections. Since EU membership involves more than the liberalisation required for the single market it also uses propensity score matching to find a statistically significant association between EU membership and the internationalisation of firms in transitional countries. Finally it uses inverse probability weighted regression adjustment (IPWRA) to test the proposition that stronger firm performance in transitional countries was associated with firms with higher levels of internationalisation (exports and foreign ownership). Our results support the view that EU membership enhanced firm efficiency in new members from transitional economies and that internationalisation was an important mechanism in that process.

Keywords: firm efficiency; productivity; European Union; transition (search for similar items in EconPapers)
JEL-codes: D22 F14 F15 I25 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2016-08
New Economics Papers: this item is included in nep-bec, nep-eff, nep-eur, nep-int, nep-sog and nep-tra
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