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Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms

Evguenia Bessonova, Konstantin Kozlov and Ksenia Yudaeva
Additional contact information
Konstantin Kozlov: CEFIR
Ksenia Yudaeva: CSR, Carnegie Endowment for International Peace, NES

No w0039, Working Papers from Center for Economic and Financial Research (CEFIR)

Abstract: 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.

Pages: 28 pages
Date: 2003-09
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Citations: View citations in EconPapers (12)

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http://www.cefir.ru/papers/WP39.pdf (application/pdf)

Related works:
Working Paper: Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms (2003) Downloads
Working Paper: Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms (2003) Downloads
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