Domestic regulation, import penetration and firm-level productivity growth

Ben Yahmed, Sarra and Dougherty, Sean (2017) Domestic regulation, import penetration and firm-level productivity growth. Journal of International Trade and Economic Development, 26 (4). pp. 385-409. ISSN 0963-8199

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Abstract

This paper shows that the impact of import penetration on firms’ productivity growth depends on firms’ distance to the efficiency frontier and on product market regulation. Using firm-level data for a substantial number of OECD countries from the late 1990s to late 2000s, the analysis reveals nonlinear effects of both sectoral import penetration and de jure product market regulation measures, depending on firms’ positions along the global distribution of productivity. Close to the technology frontier, import penetration has a strongly positive effect on firm-level productivity growth, with less stringent domestic regulation enhancing this effect substantially. However, far from the frontier, the effect of import penetration on firm-level productivity growth is much smaller and often not significant. Its interaction with domestic regulation generally has no statistically significant effect either. The heterogeneous effects of import penetration and domestic product market regulation on firm-level productivity growth are consistent with a neo-Schumpeterian view of trade and regulation.

Item Type: Article
Additional Information: Publisher Copyright: © 2016 Informa UK Limited, trading as Taylor & Francis Group.
Uncontrolled Keywords: behind-the-border regulatory barriers,firm productivity growth,import competition,international trade,product market regulation,geography, planning and development,development,economics, econometrics and finance(all) ,/dk/atira/pure/subjectarea/asjc/3300/3305
Faculty \ School: Faculty of Social Sciences > School of Economics
UEA Research Groups: Faculty of Social Sciences > Research Groups > Applied Econometrics And Finance
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Depositing User: LivePure Connector
Date Deposited: 16 Aug 2024 08:30
Last Modified: 25 Sep 2024 18:02
URI: https://ueaeprints.uea.ac.uk/id/eprint/96261
DOI: 10.1080/09638199.2016.1260632

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