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Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms

Author

Listed:
  • Evguenia Bessonova

    (CEFIR)

  • Konstantin Kozlov

    (CEFIR)

  • Ksenia Yudaeva

    (CSR, Carnegie Endowment for International Peace, NES)

Abstract

The paper studies the effects of liberalization of imports and foreign direct investment on Russian firms. Using the firm-level data from 1995-2001, this paper finds that competition with imports and with FDI exerts a positive effect on domestic firms. This effect is weaker in the case of firms located in complex industries. Increased availability of imported inputs help to improve productivity of domestic firms in the mid-1990s, although the devaluation of the ruble in 1998 temporarily made firms that relied on foreign-produced inputs less competitive. Finally, entry of foreign-owned firms in post-crisis period leads to improvement in TFP of their Russian suppliers.

Suggested Citation

  • Evguenia Bessonova & Konstantin Kozlov & Ksenia Yudaeva, 2003. "Trade Liberalization, Foreign Direct Investment, and Productivity of Russian Firms," Working Papers w0039, New Economic School (NES).
    • Handle: RePEc:abo:neswpt:w0039
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    1. Mahmood Mahmoudzadeh & Seyyed Ali Zeytoon Nejad Moosavian, 2016. "Measuring and Analyzing the Shares of Economic Growth Sources in the Mining Sector of Iran: A Neoclassical Growth Accounting Approach," Papers 1612.00833, arXiv.org.
    2. Donato de Rosa, 2006. "Explaining Russian manufacturing exports: Firm characteristics and external conditions," Working Papers halshs-00590449, HAL.
    3. Fredrik Wilhelmsson & Konstantin Kozlov, 2007. "Exports and productivity of Russian firms: in search of causality," Economic Change and Restructuring, Springer, vol. 40(4), pages 361-385, December.
    4. Rudiger Ahrend, 2006. "Russian Industrial Restructuring: Trends in Productivity, Competitiveness and Comparative Advantage," Post-Communist Economies, Taylor & Francis Journals, vol. 18(3), pages 277-295.
    5. Ichiro Iwasaki & Keiko Suganuma, 2015. "Foreign direct investment and regional economic development in Russia: an econometric assessment," Economic Change and Restructuring, Springer, vol. 48(3), pages 209-255, November.
    6. Bessonova, Evguenia & Gonchar, Ksenia, 2019. "How the innovation-competition link is shaped by technology distance in a high-barrier catch-up economy," Technovation, Elsevier, vol. 86, pages 15-32.
    7. repec:zbw:bofitp:2010_005 is not listed on IDEAS
    8. Fyodorov, Mikhail & Kuzmin, Evgeny, 2013. "Agriculture and economic security of Russia: retrospective research," MPRA Paper 47895, University Library of Munich, Germany, revised Jun 2012.
    9. Pavel Talamanov, 2024. "Research on the Impact of Geopolitical Instability on Russian Trade," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(7), pages 1276-1297, July.
    10. Eugenia Nazrullaeva, 2008. "Measurement of technological progress in Russia (in Russian)," Quantile, Quantile, issue 5, pages 59-82, September.
    11. Mayasa Mkubwa Hamad & Burhan Ahmad Mtengwa & Stabua Abdul Babiker, 2014. "The Impact of Trade Liberalization on Economic Growth in Tanzania," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(5), pages 514-532, May.
    12. N. Krasnopeeva & E. Nazrullaeva & A. Peresetsky & E. Shchetinin., 2016. "To export or not to export? The link between the exporter status of a firm and its technical efficiency in Russia’s manufacturing sector," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    13. Pyle, William & Solanko, Laura, 2010. "The composition and interests of Russia's business lobbies : A test of Olson's "encompassing organization" hypothesis," BOFIT Discussion Papers 5/2010, Bank of Finland, Institute for Economies in Transition.
    14. Donato de Rosa, 2006. "Explaining Russian manufacturing exports: Firm characteristics and external conditions," PSE Working Papers halshs-00590449, HAL.
    15. Pyle, William & Solanko, Laura, 2010. "The composition and interests of Russia's business lobbies: A test of Olson's "encompassing organization" hypothesis," BOFIT Discussion Papers 5/2010, Bank of Finland Institute for Emerging Economies (BOFIT).
    16. Julia Shvets, 2005. "Courts, firms and allocation of credit," Development and Comp Systems 0509026, University Library of Munich, Germany.

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