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International competition and firm performance: evidence from Belgium

Jan De Loecker, Catherine Fuss () and Johannes Van Biesebroeck ()

No 553099, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: We evaluate the impact of international competition on firm-level performance in Belgium. In the manufacturing sector we consider both the impact of global competition through measures of import penetration and the impact of within-EU competitiveness using measures of relative labor cost. In selected manufacturing sectors we identify the strength of international competition through a firm’s proximity to the border. In both instances, we consider the impact on a variety of performance dimensions to learn about the mechanisms and about firms’ adjustment to these competitive pressures.

Date: 2014
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Published in Working Paper Research, No 269 , pages 1-50

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