Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic
While there is considerable empirical evidence on the impact of liberalizing trade in goods, the effects of services liberalization have not been empirically established. Using firm-level data from the Czech Republic for the period 1998-2003, this...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/01/7309412/services-liberalization-benefit-manufacturing-firms-evidence-czech-republic http://hdl.handle.net/10986/6882 |
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okr-10986-68822021-04-23T14:02:32Z Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic Arnold, Jens Javorcik, Beata S. Mattoo, Aaditya ACCOUNTING AUDITING BANKING SECTOR BANKS BARRIERS TO ENTRY CENTRAL BANK COMMERCIAL BANKS CONSUMER PRICE INDEX DEFLATORS ECONOMETRIC ANALYSIS ECONOMETRIC EVIDENCE ECONOMICS EMPLOYMENT EQUILIBRIUM MODELS FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN BANKS FOREIGN COMPETITION FOREIGN ENTRY INCOME STATEMENTS INSURANCE INTERNATIONAL TRADE INTERNET CONNECTIVITY KNOW-HOW LABOR COSTS LATIN AMERICAN MONOPOLIES MONOPOLY OPERATING COSTS OPERATING EXPENSES OPERATING REVENUE OWNERSHIP STRUCTURE PENALTIES PRIVATIZATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSPORT VALUE ADDED WAGES WATER SUPPLY WORLD TRADE ORGANIZATION WTO While there is considerable empirical evidence on the impact of liberalizing trade in goods, the effects of services liberalization have not been empirically established. Using firm-level data from the Czech Republic for the period 1998-2003, this study examines the link between services sector reforms and the productivity of domestic firms in downstream manufacturing. Several aspects of services reform are considered and measured, namely, the increased presence of foreign providers, privatization, and enhanced competition. The manufacturing-services linkage is measured using information on the degree to which manufacturing firms in a particular industry rely on intermediate inputs from specific services sectors. The econometric results lead to two conclusions. First, the study finds that services policy matters for the productivity of manufacturing firms relying on services inputs. This finding is robust to several econometric specifications, including controlling for unobservable firm heterogeneity and for other aspects of openness. Second, it finds evidence that opening services sectors to foreign providers is a key channel through which services liberalization contributes to improved performance of downstream manufacturing sectors. This finding is robust to instrumenting for the extent of foreign presence in services industries. As most barriers to foreign investment today are not in goods but in services sectors, the findings may strengthen the argument for reform in this area. 2012-06-01T17:45:10Z 2012-06-01T17:45:10Z 2007-01 http://documents.worldbank.org/curated/en/2007/01/7309412/services-liberalization-benefit-manufacturing-firms-evidence-czech-republic http://hdl.handle.net/10986/6882 English Policy Research Working Paper; No. 4109 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Czech Republic |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING AUDITING BANKING SECTOR BANKS BARRIERS TO ENTRY CENTRAL BANK COMMERCIAL BANKS CONSUMER PRICE INDEX DEFLATORS ECONOMETRIC ANALYSIS ECONOMETRIC EVIDENCE ECONOMICS EMPLOYMENT EQUILIBRIUM MODELS FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN BANKS FOREIGN COMPETITION FOREIGN ENTRY INCOME STATEMENTS INSURANCE INTERNATIONAL TRADE INTERNET CONNECTIVITY KNOW-HOW LABOR COSTS LATIN AMERICAN MONOPOLIES MONOPOLY OPERATING COSTS OPERATING EXPENSES OPERATING REVENUE OWNERSHIP STRUCTURE PENALTIES PRIVATIZATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSPORT VALUE ADDED WAGES WATER SUPPLY WORLD TRADE ORGANIZATION WTO |
| spellingShingle |
ACCOUNTING AUDITING BANKING SECTOR BANKS BARRIERS TO ENTRY CENTRAL BANK COMMERCIAL BANKS CONSUMER PRICE INDEX DEFLATORS ECONOMETRIC ANALYSIS ECONOMETRIC EVIDENCE ECONOMICS EMPLOYMENT EQUILIBRIUM MODELS FINANCIAL MARKETS FINANCIAL SECTOR FOREIGN BANKS FOREIGN COMPETITION FOREIGN ENTRY INCOME STATEMENTS INSURANCE INTERNATIONAL TRADE INTERNET CONNECTIVITY KNOW-HOW LABOR COSTS LATIN AMERICAN MONOPOLIES MONOPOLY OPERATING COSTS OPERATING EXPENSES OPERATING REVENUE OWNERSHIP STRUCTURE PENALTIES PRIVATIZATION PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY PRODUCTIVITY GROWTH TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRADE LIBERALIZATION TRANSPORT VALUE ADDED WAGES WATER SUPPLY WORLD TRADE ORGANIZATION WTO Arnold, Jens Javorcik, Beata S. Mattoo, Aaditya Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic |
| geographic_facet |
Europe and Central Asia Czech Republic |
| relation |
Policy Research Working Paper; No. 4109 |
| description |
While there is considerable empirical
evidence on the impact of liberalizing trade in goods, the
effects of services liberalization have not been empirically
established. Using firm-level data from the Czech Republic
for the period 1998-2003, this study examines the link
between services sector reforms and the productivity of
domestic firms in downstream manufacturing. Several aspects
of services reform are considered and measured, namely, the
increased presence of foreign providers, privatization, and
enhanced competition. The manufacturing-services linkage is
measured using information on the degree to which
manufacturing firms in a particular industry rely on
intermediate inputs from specific services sectors. The
econometric results lead to two conclusions. First, the
study finds that services policy matters for the
productivity of manufacturing firms relying on services
inputs. This finding is robust to several econometric
specifications, including controlling for unobservable firm
heterogeneity and for other aspects of openness. Second, it
finds evidence that opening services sectors to foreign
providers is a key channel through which services
liberalization contributes to improved performance of
downstream manufacturing sectors. This finding is robust to
instrumenting for the extent of foreign presence in services
industries. As most barriers to foreign investment today are
not in goods but in services sectors, the findings may
strengthen the argument for reform in this area. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Arnold, Jens Javorcik, Beata S. Mattoo, Aaditya |
| author_facet |
Arnold, Jens Javorcik, Beata S. Mattoo, Aaditya |
| author_sort |
Arnold, Jens |
| title |
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic |
| title_short |
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic |
| title_full |
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic |
| title_fullStr |
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic |
| title_full_unstemmed |
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic |
| title_sort |
does services liberalization benefit manufacturing firms? evidence from the czech republic |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/01/7309412/services-liberalization-benefit-manufacturing-firms-evidence-czech-republic http://hdl.handle.net/10986/6882 |
| _version_ |
1764401245366255616 |