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Competitiveness and social contributions

"This project deals with the impact of reducing the social contributions weighing on export related economic activities, and thus in a broader sense it will bring into question the efficiency of policies reducing these social contributions. Compared to companies which are only involved in the domestic market, those which export their products are overall more productive, larger, and more profitable. Their employees also receive a higher median wage. One of the explanations behind the better performance of exporting companies is that they have taken up the challenge of bearing the entry cost to foreign markets (while maintaining their activity), which requires a high degree of productivity. To compete with domestic competitors also requires a highly skilled and qualified workforce to ensure efficiency and competitiveness (aside from cost related issues, i.e. innovation). "