Structure and performance of the services sector in transition economies
AbstractThis paper examines the structure and performance of the services sector in Eastern European and Central Asian countries during 1997-2004. Services represent an increasing share of total value added and employment with the major sub-sectors being wholesale trade, retail trade, inland transport, telecommunications, and real estate activities. A clear divide separates EU-5 countries from South Eastern European countries and Ukraine in terms of services labor productivity. Although a large gap in productivity also separates EU-8 countries from EU-15 countries, that gap was reduced from 1997 to 2004 as most services sub-sectors experienced fast productivity growth. High skill intensive sub-sectors and information and communications technology producers and users have exhibited higher productivity levels and growth rates relative to other sub-sectors since 2000. The author finds a positive effect of services liberalization on the productivity growth of services sub-sectors. The author also finds a positive and significant effect of services liberalization in both finance and infrastructure on the productivity of downstream manufacturing.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 4357.
Date of creation: 01 Sep 2007
Date of revision:
Labor Policies; E-Business; Labor Markets; Economic Theory&Research; Transport Economics Policy&Planning;
Other versions of this item:
- Ana M. Fernandes, 2009. "Structure and performance of the service sector in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(3), pages 467-501, 07.
- NEP-ALL-2007-09-30 (All new papers)
- NEP-DEV-2007-09-30 (Development)
- NEP-EEC-2007-09-30 (European Economics)
- NEP-EFF-2007-09-30 (Efficiency & Productivity)
- NEP-TRA-2007-09-30 (Transition Economics)
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