Abstract
Following the new strand in the new trade theory literature that focuses on firm heterogeneity, in this paper we investigate the determinants of a firm’s export performance in Ukraine. The study is based on the BEEPS firm level data compiled by EBRD and the World Bank. The study covers the period starting in 2005 and ending in 2013. We estimate the probit regressions for each year of our sample as well as for the pooled dataset that includes all years. Our pooled estimation results indicate that the probability of exporting is related to the level of productivity, the firm size, innovation, the share of university graduates in productive employment, as well as the internationalization of firms.
Highlights
After the collapse of the Soviet Union in 1991, Ukraine emerged as an independent country and followed its own way of economic transition from central planning to a market economy
In column (1) we display the estimation results for 2002 obtained from the specification that includes the labour productivity variable, having controlled for additional firm-level determinants of export activity mentioned in other studies
These include the size of the firm, the age of the firm, imported materials (Imp_Mat), the dummy variables for: innovation, the use of foreign technology, and the foreign ownership
Summary
After the collapse of the Soviet Union in 1991, Ukraine emerged as an independent country and followed its own way of economic transition from central planning to a market economy. Its way was different from the path followed by Central and Eastern European (CEE) countries, which radical-. 92 Cieślik Andrzej, Michałek Jan Jakub, Iryna Nasadiuk ly liberalized their multilateral and regional trade and integrated successfully with the European Union. The scope of economic and trade liberalization in Ukraine was significantly lower and structural and social reforms were less radical. This resulted in relatively poor economic performance compared to the transition countries which became members of the European Union in three waves of the Eastern Enlargement. Given the economic success of these countries, Ukraine changed its political orientation towards the West and signed the association agreement with the EU
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