Competition-Enhancing Policies and Infrastructure: Evidence from Russia

SITE Working Paper No. 161

30 Pages Posted: 9 Aug 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: August 3, 2001

Abstract

This paper investigates whether the efficiency effect of product market dispersion is a function of the infrastructural and policy environment. We hypothesize 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, L1, L5, L91, P23, P31

Suggested Citation

Brown, J. David and Earle, John S., Competition-Enhancing Policies and Infrastructure: Evidence from Russia (August 3, 2001). SITE Working Paper No. 161, Available at SSRN: https://ssrn.com/abstract=278837 or http://dx.doi.org/10.2139/ssrn.278837

J. David Brown

US Census Bureau Center for Economic Studies ( email )

4600 Silver Hill Road
Washington, DC 20233
United States
301-763-8769 (Phone)
301-763-5935 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

John S. Earle (Contact Author)

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

3351 Fairfax Drive
MS 3B1
Arlington, VA 22201
United States
703-993-8023 (Phone)

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

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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