Services liberalization and productivity of manufacturing firms : Evidence from Ukraine
This paper brings new evidence on the impact of services liberalization on the performance of manufacturing firms. Using a unique database of Ukrainian firms in 2001-2007, the authors utilize an external push for liberalization in the services sect...
| Main Authors: | , |
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| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120111091149 http://hdl.handle.net/10986/3229 |
| Summary: | This paper brings new evidence on the
impact of services liberalization on the performance of
manufacturing firms. Using a unique database of Ukrainian
firms in 2001-2007, the authors utilize an external push for
liberalization in the services sector as a source of
exogenous variation to identify the impact of services
liberalization on total factor productivity (TFP) of
manufacturing firms. The results indicate that a standard
deviation increase in services liberalization is associated
with a 9 percent increase in TFP. Allowing services
liberalization to dynamically influence TFP through the
investment channel leads to an even larger 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. |
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