Structure and Performance of the Service Sector in Transition Economies
This paper examines the performance of the service sector in the Eastern European transition economies during the 1997-2004 period. The performance of the service sector as a whole and of its sub-sectors is very heterogeneous within the region. Service sub-sectors that are information and communications technology producers or users and those using skilled labour more intensively exhibit the highest labour productivity growth. Our estimates show a positive and significant effect of liberalization on service labour productivity growth that is stronger for sub-sectors that are more distant from the technological frontier. Service liberalization is also shown to have a positive effect on labour productivity levels and growth of downstream manufacturing industries.
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| Format: | Journal Article biblioteca |
| Language: | EN |
| Published: |
2009
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| Subjects: | Human Capital, Skills, Occupational Choice, Labor Productivity J240, Production, Pricing, and Market Structure, Size Distribution of Firms L110, Firm Performance: Size, Diversification, and Scope L250, Industry Studies: Services: General L800, Technological Change: Choices and Consequences, Diffusion Processes O330, |
| Online Access: | http://hdl.handle.net/10986/5726 |
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| Summary: | This paper examines the performance of the service sector in the Eastern European transition economies during the 1997-2004 period. The performance of the service sector as a whole and of its sub-sectors is very heterogeneous within the region. Service sub-sectors that are information and communications technology producers or users and those using skilled labour more intensively exhibit the highest labour productivity growth. Our estimates show a positive and significant effect of liberalization on service labour productivity growth that is stronger for sub-sectors that are more distant from the technological frontier. Service liberalization is also shown to have a positive effect on labour productivity levels and growth of downstream manufacturing industries. |
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