Journal article
Does services liberalization benefit manufacturing firms? Evidence from the Czech Republic.
- Abstract:
- While there is considerable empirical evidence on the impact of liberalizing trade in goods, the effects of services liberalization have not been empirically established. This study examines the link between services sector reforms and the productivity of manufacturing industries relying on services inputs. Several aspects of services liberalization are considered, namely, the presence of foreign providers, privatization and the level of competition. The results, based on firm-level data from the Czech Republic, show a positive relationship between services sector reform and the performance of domestic firms in downstream manufacturing sectors. Allowing foreign entry into services industries appears to be the key channel through which services liberalization contributes to improved performance of manufacturing sectors. This finding is supported by evidence that foreign acquisitions of Czech services providers result in profound changes in the labor productivity and sales of acquired firms. As most barriers to foreign investment today are not in goods but in services sectors, the findings of this study may strengthen the argument for reform in this area.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Access Document
- Files:
-
-
(Preview, Accepted manuscript, pdf, 302.3KB, Terms of use)
-
- Publisher copy:
- 10.1016/j.jinteco.2011.05.002
Authors
- Publisher:
- Elsevier
- Journal:
- Journal of International Economics More from this journal
- Volume:
- 85
- Issue:
- 1
- Pages:
- 136 - 146
- Publication date:
- 2011-01-01
- DOI:
- ISSN:
-
0022-1996
- Language:
-
English
- UUID:
-
uuid:29391fc0-defb-46d7-902b-19ce8f70afd8
- Local pid:
-
oai:economics.ouls.ox.ac.uk:15170
- Deposit date:
-
2011-08-16
- ARK identifier:
Terms of use
- Copyright holder:
- Elsevier BV
- Copyright date:
- 2011
- Notes:
- © 2011 Elsevier B.V. All rights reserved. NOTICE: this is the author’s version of a work that was accepted for publication in Journal of International Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of International Economics, 85, 1, (September 2011) DOI#10.1016/j.jinteco.2011.05.002
If you are the owner of this record, you can report an update to it here: Report update to this record