Does accession to the EU affect firms’ productivity?

Jens Hӧlscher and Peter Howard-Jones
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Jens Hӧlscher: University of Bournemouth, UK
Peter Howard-Jones: University of Bournemouth, UK
Authors registered in the RePEc Author Service: Jens Hölscher

IZA World of Labor, 2019, No 458, 458

Abstract: Firms in the new EU member states of Eastern Europe are more productive than those in other transition economies, but with a diminishing advantage. The least productive firms benefit the most from membership, although the situation is reversed in the case of foreign-owned firms. Foreign direct investment fails to promote knowledge and technology spillovers beyond the receiving firms. The dominance of multinational enterprises in the new EU member states enhances the threat of corporate state capture and asymmetric infrastructure development, whilst access to finance remains a constricting issue for all firms.

Keywords: EU; institutions; state capture; foreign direct investment (FDI); access to finance (search for similar items in EconPapers)
JEL-codes: F4 G3 P2 P45 (search for similar items in EconPapers)
Date: 2019
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