Structure and Performance of the Services Sector in Transition Economies [electronic resource] / Fernandes, Ana M.

By: Fernandes, Ana MContributor(s): Fernandes, Ana MMaterial type: TextTextPublication details: Washington, D.C., The World Bank, 2007Description: 1 online resource (53 p.)Subject(s): Accounting | E-Business | Economic growth | Economic Theory and Research | Employment | Human capital | Insurance | Labor Markets | Labor Policies | Labor productivity | Macroeconomics and Economic Growth | Private Sector Development | Productivity growth | Skilled labor | Skilled workers | Social Protections and Labor | Technological innovations | Transport | Transport Economics, Policy and PlanningAdditional physical formats: Fernandes, Ana M.: Structure and Performance of the Services Sector in Transition Economies.Online resources: Click here to access online Abstract: This paper examines the structure and performance of the services sector in Eastern European and Central Asian countries during 1997-2004. Services represent an increasing share of total value added and employment with the major sub-sectors being wholesale trade, retail trade, inland transport, telecommunications, and real estate activities. A clear divide separates EU-5 countries from South Eastern European countries and Ukraine in terms of services labor productivity. Although a large gap in productivity also separates EU-8 countries from EU-15 countries, that gap was reduced from 1997 to 2004 as most services sub-sectors experienced fast productivity growth. High skill intensive sub-sectors and information and communications technology producers and users have exhibited higher productivity levels and growth rates relative to other sub-sectors since 2000. The author finds a positive effect of services liberalization on the productivity growth of services sub-sectors. The author also finds a positive and significant effect of services liberalization in both finance and infrastructure on the productivity of downstream manufacturing.
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This paper examines the structure and performance of the services sector in Eastern European and Central Asian countries during 1997-2004. Services represent an increasing share of total value added and employment with the major sub-sectors being wholesale trade, retail trade, inland transport, telecommunications, and real estate activities. A clear divide separates EU-5 countries from South Eastern European countries and Ukraine in terms of services labor productivity. Although a large gap in productivity also separates EU-8 countries from EU-15 countries, that gap was reduced from 1997 to 2004 as most services sub-sectors experienced fast productivity growth. High skill intensive sub-sectors and information and communications technology producers and users have exhibited higher productivity levels and growth rates relative to other sub-sectors since 2000. The author finds a positive effect of services liberalization on the productivity growth of services sub-sectors. The author also finds a positive and significant effect of services liberalization in both finance and infrastructure on the productivity of downstream manufacturing.

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