Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia

Public infrastructure is one of the important determinants of economic growth. Not only access to but also quality of infrastructure affects firm productivity as well as people's livelihood. Frequent interruptions of the infrastructure-service supply impose extra backup costs on enterprises, hi...

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Main Author: Iimi, Atsushi
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5865
id okr-10986-5865
recordtype oai_dc
spelling okr-10986-58652021-04-23T14:02:23Z Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia Iimi, Atsushi National Government Expenditures and Related Policies: Infrastructures Other Public Investment and Capital Stock H540 Firm Performance: Size, Diversification, and Scope L250 Industrialization Manufacturing and Service Industries Choice of Technology O140 Socialist Systems and Transitional Economies: Factor and Product Markets Industry Studies Population P230 Public infrastructure is one of the important determinants of economic growth. Not only access to but also quality of infrastructure affects firm productivity as well as people's livelihood. Frequent interruptions of the infrastructure-service supply impose extra backup costs on enterprises, hinder their timely business activities, and result in large losses of sales opportunities. This paper focuses on the impacts of improving the quality of public utilities (electricity, water supply, and telecommunications), using firm-level data from 26 transition economies in Eastern Europe and Central Asia. The results suggest that firm costs would significantly increase when electricity outages occur frequently and the outage duration becomes longer. Similarly, when more time is required to restore suspended water supply, firms' competitiveness would be weakened. Not surprisingly, the impacts tend to vary depending on industry. The construction, manufacturing, and hotel and restaurant sectors are found particularly vulnerable. 2012-03-30T07:34:55Z 2012-03-30T07:34:55Z 2011 Journal Article Developing Economies 00121533 http://hdl.handle.net/10986/5865 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Europe and Central Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic National Government Expenditures and Related Policies: Infrastructures
Other Public Investment and Capital Stock H540
Firm Performance: Size, Diversification, and Scope L250
Industrialization
Manufacturing and Service Industries
Choice of Technology O140
Socialist Systems and Transitional Economies: Factor and Product Markets
Industry Studies
Population P230
spellingShingle National Government Expenditures and Related Policies: Infrastructures
Other Public Investment and Capital Stock H540
Firm Performance: Size, Diversification, and Scope L250
Industrialization
Manufacturing and Service Industries
Choice of Technology O140
Socialist Systems and Transitional Economies: Factor and Product Markets
Industry Studies
Population P230
Iimi, Atsushi
Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia
geographic_facet Europe and Central Asia
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description Public infrastructure is one of the important determinants of economic growth. Not only access to but also quality of infrastructure affects firm productivity as well as people's livelihood. Frequent interruptions of the infrastructure-service supply impose extra backup costs on enterprises, hinder their timely business activities, and result in large losses of sales opportunities. This paper focuses on the impacts of improving the quality of public utilities (electricity, water supply, and telecommunications), using firm-level data from 26 transition economies in Eastern Europe and Central Asia. The results suggest that firm costs would significantly increase when electricity outages occur frequently and the outage duration becomes longer. Similarly, when more time is required to restore suspended water supply, firms' competitiveness would be weakened. Not surprisingly, the impacts tend to vary depending on industry. The construction, manufacturing, and hotel and restaurant sectors are found particularly vulnerable.
format Journal Article
author Iimi, Atsushi
author_facet Iimi, Atsushi
author_sort Iimi, Atsushi
title Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia
title_short Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia
title_full Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia
title_fullStr Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia
title_full_unstemmed Effects of Improving Infrastructure Quality on Business Costs : Evidence from Firm-Level Data in Eastern Europe and Central Asia
title_sort effects of improving infrastructure quality on business costs : evidence from firm-level data in eastern europe and central asia
publishDate 2012
url http://hdl.handle.net/10986/5865
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