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Infrastructure System Obstacles and Technology Adoption by Firms in Transition Countries

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  • Anderson John E.

    (Department of Economics, 242612 University of Nebraska-Lincoln , Lincoln, NE, USA)

  • Toshmatova Muazzam

    (Heldrich Center for Workforce Development, Rutgers University, New Brunswick, NJ, USA)

Abstract

This study uses business survey data to analyze firm perceptions of infrastructure systems in transition countries as obstacles to conducting business. Factors that contribute to reported perceptions are modeled, including country macroeconomic conditions, firm characteristics, and measures of overall reforms and infrastructure system reforms. Identified obstacles arise from binding constraints that limit economic growth, reflect implicit shadow costs, and signal areas in need of policy reform or infrastructure investment. The analysis covers electric power, telecommunications, transportation, and water and wastewater infrastructure systems. Also examined is whether transition indicators of reforms, intended to reflect improvements, are associated with perceptions of obstacles. Beyond identifying infrastructure obstacles and the effects of reforms during the transition process, we also explore firm adoptions of new electronic technologies, essentially a new infrastructure system, as they use email, websites, cell phones, and high-speed Internet in their business activity.

Suggested Citation

  • Anderson John E. & Toshmatova Muazzam, 2024. "Infrastructure System Obstacles and Technology Adoption by Firms in Transition Countries," Comparative Southeast European Studies, De Gruyter, vol. 72(1), pages 104-134, March.
    • Handle: RePEc:bpj:soeuro:v:72:y:2024:i:1:p:104-134:n:1
    DOI: 10.1515/soeu-2023-0005
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    References listed on IDEAS

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    5. Jon Stern & Junior R. Davis, 1998. "Economic reform of the electricity industries of Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(2), pages 427-460, November.
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