The Efficiency of Postal Services in the Age of Market Liberalization and the Internet: Evidence from Central and Eastern Europe
Posted: 20 Nov 2015
Date Written: November 16, 2015
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
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