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Efficient Infrastructure Supply for Economic Development in Transition Countries: the Case of Ukraine

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Author Info
Boris Dodonov
Christian Von Hirschhausen
Petra Opitz
Pavlo Sugolov

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Abstract

Infrastructure restructuring is one of the major elements of structural reforms in transition economies because of its expected large economic and social impact. This article aims to assess the role of infrastructure policy in economic development in transition countries in general and Ukraine in particular. We test the relationship between infrastructure policy and economic growth, though this test is carried out at a very aggregate level due to data problems. According to our estimations the government can make an indirect contribution to economic development by enhancing competition and efficiency within the infrastructure industries. The article also develops a framework to analyse and compare infrastructure policies across transition countries, and provides a detailed survey of infrastructure policies in Ukraine. We conclude that the major element of reforms should be tariff reform, carried out concurrently with commercialisation and deregulation of the sector.

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Article provided by Taylor and Francis Journals in its journal Post-Communist Economies.

Volume (Year): 14 (2002)
Issue (Month): 2 (June)
Pages: 149-167
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Handle: RePEc:taf:pocoec:v:14:y:2002:i:2:p:149-167

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  1. Davidson, R. & MacKinnon & J.G., 1999. "Artificial Regressions," G.R.E.Q.A.M. 99a04, Universite Aix-Marseille III.
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  2. Witold J. Henisz, 2002. "The institutional environment for infrastructure investment," Industrial and Corporate Change, Oxford University Press, vol. 11(2), pages 355-389.
  3. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March. [Downloadable!] (restricted)
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  4. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December. [Downloadable!] (restricted)
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  5. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February. [Downloadable!] (restricted)
  6. Canning, David & Bennathan, Esra, 2000. "The social rate of return on infrastructure investments," Policy Research Working Paper Series 2390, The World Bank. [Downloadable!]
  7. Garcia-Mila, Teresa & McGuire, Therese J & Porter, Robert H, 1996. "The Effect of Public Capital in State-Level Production Functions Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 177-80, February. [Downloadable!] (restricted)
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  8. Russell Davidson & James G. MacKinnon, 1987. "Testing for Consistency using Artificial Regressions," Working Papers 687, Queen's University, Department of Economics. [Downloadable!]
  9. Canning, David, 1999. "Infrastructure's contribution to aggregate output," Policy Research Working Paper Series 2246, The World Bank. [Downloadable!]
  10. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September. [Downloadable!] (restricted)
  11. Piotr Jasinski, Cathryn Ross, 1999. "The Use of Policies for Competition in the Promotion of Structural Change in Transforming Economies," Post-Communist Economies, Taylor and Francis Journals, vol. 11(2), pages 193-217, June. [Downloadable!] (restricted)
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