Services Policy Reform and Economic Growth in Transition Economies, 1990-2004
Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)
Robert Schuman Centre for Advanced Studies; Centre for Economic Policy Research (CEPR)
CEPR Discussion Paper No. 5625
Major changes have occurred in the structure of former centrally planned economies, including a sharp rise in the share of services in GDP, employment and international transactions. However, large differences exist across transition economies with respect to services intensity and services policy reforms. We find that reforms in policies towards financial and infrastructure services, including telecommunications, power and transport, are highly correlated with inward FDI. Controlling for regressors commonly used in the growth literature, we find that measures of services policy reform are statistically significant explanatory variables for the post-1990 economic performance of transition economies. These findings suggest services policies should be considered more generally in empirical analyses of economic growth.
Number of Pages in PDF File: 28
Keywords: Services, economic growth, transition economies
JEL Classification: F14, F43, O14, O40working papers series
Date posted: July 5, 2006
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