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

Delia Baghdasaryan, Lisbeth la Cour () and Cédric Schneider
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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]

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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.

Keywords: economic competition; enterprises firms businesses; Initial productivity; Firm productivity; Trade liberalization; Competition; productivité; concurrence économique; compétitivité des entreprises; libéralisation commerciale; entreprise (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

Published in Journal of Industry, Competition and Trade, 2016, 16 (1), pp.101-125. ⟨10.1007/s10842-015-0203-y⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01570304

DOI: 10.1007/s10842-015-0203-y

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