The Efficiency of Postal Services in the Age of Market Liberalization and the Internet: Evidence from Central and Eastern Europe

Posted: 20 Nov 2015

See all articles by Kiril Tochkov

Kiril Tochkov

Texas Christian University - Department of Economics

Date Written: November 16, 2015

Abstract

The rise in electronic communications and the recent liberalization of the postal market in the European Union have put national postal-service providers in Central and Eastern Europe (CEE) under pressure to restructure and optimize their operations. The paper employs non-parametric methods to measure the relative technical and cost efficiency of CEE postal operators in terms of quantity-based and quality-based output indicators. The results indicate that inefficiency varies between 20% and 30%. Regression analysis attributes efficiency gains to increased competition, institutional reforms, less burdensome customs procedures, and population density, while use of electronic mail was negatively related to postal-service efficiency.

Keywords: Postal services, Efficiency, Competition, Internet, Transition economies

JEL Classification: L87, L50, P23

Suggested Citation

Tochkov, Kiril, The Efficiency of Postal Services in the Age of Market Liberalization and the Internet: Evidence from Central and Eastern Europe (November 16, 2015). Utilities Policy, Vol. 36, pp. 35-42, 2015, Available at SSRN: https://ssrn.com/abstract=2691356

Kiril Tochkov (Contact Author)

Texas Christian University - Department of Economics ( email )

Box 298510
Fort Worth, TX 76129
United States
817-257-7554 (Phone)
817-257-5058 (Fax)

HOME PAGE: http://personal.tcu.edu/ktochkov

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