Services liberalization and productivity of manufacturing firms

Oleksandr Shepotylo · Volodymyr Vakhitov

46 citations0/0 files storedEconomics of Transition

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Global trade and economics Economic Growth and Productivity Economic Issues in Ukraine

Abstract

Abstract Employing a unique database of Ukrainian firms in 2001–07, we use the external push for liberalization in the services sector as a source of exogenous variation to identify the effect of services liberalization on total factor productivity (TFP) of manufacturing firms. The results indicate that a standard deviation increase in services liberalization within a firm is associated with a 9.2 percent increase in TFP. The effect is stronger for firms with high productivity, bringing about a reallocation of resources within an industry. Industry‐level results show that the effect of reallocation on industry productivity is almost as strong as the within‐firm effect. The dynamic interaction of services liberalization and TFP through the investment channel reinforces the effect. The effect is robust to different estimation methods and to different sub‐samples of the data. In particular, it is more pronounced for domestic and small firms.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 46 citations exist upstream.

References

2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 1996Financial Dependence and Growth 2003Estimating Production Functions Using Inputs to Control for Unobservables 2003Plants and Productivity in International Trade 2004Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages 2007Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia 2002Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages 2002Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants

Cited by

2019Deep integration in the Eurasian Economic Union: what are the benefits of successful implementation or wider liberalization?2019Comparison of deep integration in the Melitz, Krugman and Armington models: The case of The Philippines in RCEP 2019Non-tariff measures, quality and exporting: evidence from microdata in food processing in Ukraine 2025How does service trade openness promote the green transformation of manufacturing firms? Evidence from China

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.