Competition Enhancing Policies and Infrastructure: Evidence from Russia

32 Pages Posted: 8 Nov 2001

See all articles by J. David Brown

J. David Brown

US Census Bureau Center for Economic Studies; IZA Institute of Labor Economics

John S. Earle

George Mason University - Schar School of Policy and Government; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 2001

Abstract

This Paper investigates whether the efficiency effect of product market dispersion is a function of the infrastructural and policy environment. We hypothesise that more developed transportation and communication infrastructure and lower government regulation may reduce transaction costs, intensifying the competition associated with a given market structure, and we use data from the recently liberalized and regionally diverse country of Russia to test the hypothesis. Estimating translog production functions on a large 1992-99 panel of manufacturing firms, we find that the efficiency impact of market dispersion varies positively with the regional density of highway, railroad and telephone infrastructure, but negatively with regional price regulation and the share of votes received by the Communist Party.

Keywords: Market structure, competition, infrastructure, Russia, transition

JEL Classification: H54, L10, L50, P23, P31

Suggested Citation

Brown, J. David and Earle, John S., Competition Enhancing Policies and Infrastructure: Evidence from Russia (October 2001). Available at SSRN: https://ssrn.com/abstract=289685

J. David Brown (Contact Author)

US Census Bureau Center for Economic Studies ( email )

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IZA Institute of Labor Economics

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John S. Earle

George Mason University - Schar School of Policy and Government ( email )

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HOME PAGE: http://earle.gmu.edu

IZA Institute of Labor Economics

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Bonn, D-53072
Germany

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