44After the collapse of the Soviet Union in 1991, Ukraine emerged as an independent country and followed its own system of economic and political transition. Since the beginning of the 1990s Ukraine has been struggling to transform its economy from a central planning system into an open market economy. The change in political leadership and the declarations for deeper economic reforms as well as the recent signing of a free trade agreement with the EU, creates new opportunities and prospects for economic recovery and the improved performance of Ukrainian enterprises. However, up until now there has been relatively little empirical evidence on the performance of Ukrainian enterprises, especially in the regional context. Therefore, we aim to fill at least a part of the existing gap in the literature by contributing to a better understanding of total factor productivity (TFP) determinants in an economy that is completing the transition from a centrally planned system to an open market one.The main goal of this paper is to empirically study the nexus between TFP, capital intensity, firm size, the level of competition in the industry, ownership status, and firm internationalization (exports and imports) of Ukrainian firms located in various macroregions, having controlled for industry-specific effects. Our study is based on Ukrainian firm-level data for the year 2013. This has allowed us to evaluate whether the determinants of productivity in manufacturing sectors are different across various regions of Ukraine.This paper relates to the rapidly growing and recent strand in empirical literature that focuses on firm-level TFP determinants. The majority of this literature is devoted to the analysis of firmlevel determinants of TFP at the country level.1 There have been 1 Given the fact that the quantity of this literature is enormous, summarizing it goes beyond the scope of this paper. An extensive review of the literature on TFP determinants has been offered by Syverson (2011). Instead, this paper discusses only studies that focus on Ukraine.several studies on the performance of enterprises in Ukraine, for example, Pivovarsky ( (2015) demonstrated that overall improvements in firm productivity within Ukraine's manufacturing sector were found to vary substantially by industry, trade status and firm turnover; while Shepotylo and Vakhitov (2015) identified the effect of service liberalization on the TFP of manufacturing firms. However, so far no attempts have been made to study, empirically, the relationship between productivity and firm characteristics of Ukrainian enterprises in particular regions.In contrast to other studies, which are often based on simple labour productivity measures, this paper uses TFP as a measure of overall productivity, calculated using the LevinsohnPetrin (2003) method. In particular we have studied the role of firm characteristics such as internationalization (measured by foreign capital participation), exports and imported inputs, firm size, private ownership, and the level of market conce...