Structure and performance of the service sector in transition economies

Ana Margarida Fernandes

The Economics of Transition, 2009, vol. 17, issue 3, pages 467-501

Abstract: This paper examines the performance of the service sector in the Eastern European transition economies during the 1997-2004 period. The performance of the service sector as a whole and of its sub-sectors is very heterogeneous within the region. Service sub-sectors that are information and communications technology producers or users and those using skilled labour more intensively exhibit the highest labour productivity growth. Our estimates show a positive and significant effect of liberalization on service labour productivity growth that is stronger for sub-sectors that are more distant from the technological frontier. Service liberalization is also shown to have a positive effect on labour productivity levels and growth of downstream manufacturing industries. Copyright (c) 2009 The Author. Journal compilation (c) 2009 The European Bank for Reconstruction and Development.

Date: 2009

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Working Paper: Structure and performance of the services sector in transition economies (2007)
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