Services Policy Reform and Economic Growth in Transition Economies, 1990-2004

28 Pages Posted: 5 Jul 2006

See all articles by Felix Eschenbach

Felix Eschenbach

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

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Date Written: April 2006

Abstract

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.

Keywords: Services, economic growth, transition economies

JEL Classification: F14, F43, O14, O40

Suggested Citation

Eschenbach, Felix and Hoekman, Bernard, Services Policy Reform and Economic Growth in Transition Economies, 1990-2004 (April 2006). CEPR Discussion Paper No. 5625. Available at SSRN: https://ssrn.com/abstract=914174

Felix Eschenbach

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burgemeester Oudlaan 50
3062 PA Rotterdam, NL 3062 PA
Netherlands
+31 10 408 8924 (Phone)
+31 10 408 9146 (Fax)

Bernard Hoekman (Contact Author)

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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