Trade liberalization in Ukraine boosts industry productivity through selection and within-firm effects.
Trade liberalization in Ukraine led to increased industry productivity through firms improving their productivity with better inputs and by eliminating the least productive firms. The study used a new method to analyze changes in productivity distribution within industries over time. By examining manufacturing and services firms from 2001-2009, the researchers found that deregulation caused shifts in productivity distribution, with changes in input tariffs and services playing a role in this shift.