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Firm competitiveness and regional disparities in Georgia

Rodríguez-Pose, Andrés and Hardy, Daniel (2017) Firm competitiveness and regional disparities in Georgia. Geographical Review, 107 (2). pp. 384-411. ISSN 0016-7428

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Identification Number: 10.1111/j.1931-0846.2016.12180.x

Abstract

There are many challenges to building firm competitiveness in posttransition economies, particularly with the intensification of as global trade integration. Intranation variations in firm competitiveness are also stark, highlighting the need for policies to overcome the legacy of pretransition economic structures. Utilizing data from Georgia's annual firm census and household surveys, this paper analyzes the nature of the country's competitive landscape—measured as labor productivity—over the period 2006–2012. The results of our empirical estimations reveal that although a large proportion of a firm's competitiveness is associated with its own characteristics (sorting and compositional effects), location-specific factors are also highly relevant. In particular, the extent of agglomeration, human capital endowments, and local expenditures—such as transport infrastructure investments—play a significant role in conditioning firm-level competitiveness. Given current regional endowments, these findings highlight the significant attention that needs to be paid to building capacities in less-favored areas, not only to ensure that trade integration does not harm Georgia's less-favored regions, but also to make further progress in developing the country's private sector and fully maximize the export potential across its full stock of enterprises.

Item Type: Article
Official URL: http://onlinelibrary.wiley.com/journal/10.1001/(IS...
Additional Information: © 2016 American Geographical Society of New York
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor
Sets: Departments > Geography and Environment
Date Deposited: 30 Aug 2016 14:16
Last Modified: 31 Oct 2017 11:13
Projects: 269868
Funders: Seventh Framework Programme
URI: http://eprints.lse.ac.uk/id/eprint/67543

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