Project Management

Does International Openness Affect Productivity Of Local Firms? Evidence From Southeastern Europe

Download Now Free registration required

Executive Summary

This paper examines the role of international openness on the change of firm productivity in Southeastern Europe (SEE). This is a crucial question for middle income countries. Using firm-level data for six transition economies over the period 1994-2002, the authors identify whether foreign ownership and propensity to trade with more advanced countries can bring about higher learning effects. The authors find that foreign ownership has helped at restructuring and enhancing productivity of local firms in four out of six countries, exporting to advanced markets has a larger impact on productivity growth in four countries, especially when firm's absorptive capacity is taken into account,

  • Format: PDF
  • Size: 434 KB