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Does accession to the EU affect firms’ productivity?

Author

Listed:
  • Jens Hӧlscher

    (University of Bournemouth, UK)

  • Peter Howard-Jones

    (University of Bournemouth, UK)

Abstract

Firms in the new EU member states of Eastern Europe are more productive than those in other transition economies, but with a diminishing advantage. The least productive firms benefit the most from membership, although the situation is reversed in the case of foreign-owned firms. Foreign direct investment fails to promote knowledge and technology spillovers beyond the receiving firms. The dominance of multinational enterprises in the new EU member states enhances the threat of corporate state capture and asymmetric infrastructure development, whilst access to finance remains a constricting issue for all firms.

Suggested Citation

  • Jens Hӧlscher & Peter Howard-Jones, 2019. "Does accession to the EU affect firms’ productivity?," IZA World of Labor, Institute of Labor Economics (IZA), pages 458-458, March.
    • Handle: RePEc:iza:izawol:journl:2019:n:458
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    References listed on IDEAS

    as
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    4. Peter Howard-Jones & Jens Hölscher & Dragana Radicic, 2017. "Firm Productivity In The Western Balkans: The Impact Of European Union Membership And Access To Finance," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(215), pages 7-52, October –.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    EU; institutions; state capture; foreign direct investment (FDI); access to finance;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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