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Author
Aghion Philippe, Schankerman Mark
Title
Competition, Entry and the Social Returns to Infrastructure in Transition Economies
Source
The Economics of Transition, 1999, vol. 7, nr 1, s. 79-101
Keyword
Konkurencyjność przedsiębiorstwa, Usługi publiczne, Infrastruktura gospodarcza, Restrukturyzacja przedsiębiorstw
Enterprise competitiveness, Public services, Economic infrastructure, Restructuring of enterprises
Abstract
W artykule przedstawiono teoretyczne założenia modelu wyjaśniającego wpływ inwestycji w infrastrukturę na proces transformacji i sprawniejsze funkcjonowanie rynku. Model zakłada, że przez redukcję tzw. kosztów transakcji, inwestycje w infrastrukturę poprawiają konkurencyjność rynków, eliminując firmy o wysokich kosztach.

This paper presents a simple model for analysing the contribution of investments in physical and institutional infrastructure to the transition process. In addition to the direct cost savings, infrastructure investment generates important indirect effects, or transition impacts. The model shows that, by reducing transaction costs, infrastructure intensifies product market competition. This leads to more effective weeding out of the existing high-cost firms in the market. In this model, infrastructure also increases the incentives for low-cost firms to restructure which generates additional efficiency gains, but exacerbates the existing cost asymmetry in the economy. Finally, infrastructure investment enhances the incentives for relatively low-cost firms to enter the market, and thus improves the efficiency of the entry process. The importance of these transition impacts of infrastructure is dependent upon features of the economy, such as the degree of cost asymmetry among firms, the proportion of high-cost firms, the cost of restructuring and entry costs for new firms
Accessibility
The Main Library of the Cracow University of Economics
The Main Library of Poznań University of Economics and Business
The Main Library of the Wroclaw University of Economics
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ISSN
0967-0750
Language
eng
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