Total factor productivity growth at the firm-level: The effects of capital account liberalization

• 成果类型: Article
• 署名作者: Li, Xiang; Su, Dan
• 署名单位: Leibniz Association; Leibniz Institut fur Wirtschaftsforschung Halle (IWH); Martin Luther University Halle Wittenberg
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2022.103676
• 发表日期: 2022
• 关键词: capital account liberalization; Economic growth; total factor productivity

摘要

This study provides firm-level evidence on the effect of capital account liberalization on total factor productivity (TFP) growth. We find that a one standard deviation increase in the capital account openness indicator constructed by Fernandez et al. (2016) is significantly associated with a 0.18 standard deviation increase in firms' TFP growth rates. The productivity-enhancing effects are stronger for sectors with higher external finance dependence and capital-skill complementarity, and are persistent five years after liberalization. Moreover, we show that potential transmission mechanisms include improved financing conditions, greater skilled labor utilization, and technology upgrades. Finally, we document heterogeneous effects across firm size and tradability, and threshold effects with respect to the country's institutional quality.(c) 2022 Elsevier B.V. All rights reserved.