Publication:
Does Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republic

dc.contributor.authorArnold, Jens
dc.contributor.authorJavorcik, Beata S.
dc.contributor.authorMattoo, Aaditya
dc.date.accessioned2012-06-01T17:45:10Z
dc.date.available2012-06-01T17:45:10Z
dc.date.issued2007-01
dc.description.abstractWhile 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/01/7309412/services-liberalization-benefit-manufacturing-firms-evidence-czech-republic
dc.identifier.urihttps://hdl.handle.net/10986/6882
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4109
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAUDITING
dc.subjectBANKING SECTOR
dc.subjectBANKS
dc.subjectBARRIERS TO ENTRY
dc.subjectCENTRAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSUMER PRICE INDEX
dc.subjectDEFLATORS
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMETRIC EVIDENCE
dc.subjectECONOMICS
dc.subjectEMPLOYMENT
dc.subjectEQUILIBRIUM MODELS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN COMPETITION
dc.subjectFOREIGN ENTRY
dc.subjectINCOME STATEMENTS
dc.subjectINSURANCE
dc.subjectINTERNATIONAL TRADE
dc.subjectINTERNET CONNECTIVITY
dc.subjectKNOW-HOW
dc.subjectLABOR COSTS
dc.subjectLATIN AMERICAN
dc.subjectMONOPOLIES
dc.subjectMONOPOLY
dc.subjectOPERATING COSTS
dc.subjectOPERATING EXPENSES
dc.subjectOPERATING REVENUE
dc.subjectOWNERSHIP STRUCTURE
dc.subjectPENALTIES
dc.subjectPRIVATIZATION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTION FUNCTIONS
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectTELECOMMUNICATIONS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL OUTPUT
dc.subjectTRADE LIBERALIZATION
dc.subjectTRANSPORT
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.subjectWATER SUPPLY
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWTO
dc.titleDoes Services Liberalization Benefit Manufacturing Firms? Evidence from the Czech Republicen
dspace.entity.typePublication
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/01/7309412/services-liberalization-benefit-manufacturing-firms-evidence-czech-republic
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEducation
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.identifier.doi10.1596/1813-9450-4109
okr.identifier.externaldocumentum000016406_20070109095012
okr.identifier.internaldocumentum7309412
okr.identifier.reportWPS4109
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/01/09/000016406_20070109095012/Rendered/PDF/wps4109.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryCzech Republic
okr.topicMacroeconomics and Economic Growth::Commodities
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicMacroeconomics and Economic Growth::Knowledge Economy
okr.topicEducation::Education for the Knowledge Economy
okr.topicFinance and Financial Sector Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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