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Market liberalization and ownership status of incumbent telecom enterprises: global evidence from the telecom sector

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  • Sang Lee

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    (Southeastern Louisiana University)

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    Abstract

    Coupled with the early wave of privatization in the 80s of state-owned telecom enterprises, the reform trend in the telecom market has shifted toward the market liberalization since the 90s, resulting in extended multilateral negotiations on the introduction of competition into basic telecommunications. Building on the empirical model of Greene (1998), this study employs a recursive simultaneous bivariate probit model and examines how the ownership status of incumbent telecom operators affects the market liberalization in basic telecom services. The results show that the implementation of market liberalization programs is clustered where private ownership is more present while opportune stock market conditions and the government's capital constraints are positively associated with the privatization. This study provides the concerned governments with policy choices that can facilitate or retard the implementation of a market liberalization program in their respective countries.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 12 (2008)
    Issue (Month): 30 ()
    Pages: 1-10

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    Handle: RePEc:ebl:ecbull:eb-08l90001

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    1. Gutierrez, Luis Hernando, 2003. "The Effect of Endogenous Regulation on Telecommunications Expansion and Efficiency in Latin America," Journal of Regulatory Economics, Springer, Springer, vol. 23(3), pages 257-86, May.
    2. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, Elsevier, vol. 15(4), pages 443-466, December.
    3. Ros, Agustin J, 1999. "Does Ownership or Competition Matter? The Effects of Telecommunications Reform on Network Expansion and Efficiency," Journal of Regulatory Economics, Springer, Springer, vol. 15(1), pages 65-92, January.
    4. Colin Xu, Lixin & Li, Wei & Zhen-Wei Qiang, Christine, 2001. "The Political Economy of Privatization and Competition: Cross-Country Evidence from the Telecommunications Sector," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2825, C.E.P.R. Discussion Papers.
    5. Banerjee, Aniruddha & Ros, Agustin J., 2004. "Patterns in global fixed and mobile telecommunications development: a cluster analysis," Telecommunications Policy, Elsevier, Elsevier, vol. 28(2), pages 107-132, March.
    6. Scott Wallsten, 2003. "Of Carts and Horses: Regulation and Privatization in Telecommunications Reforms," Journal of Economic Policy Reform, Taylor & Francis Journals, Taylor & Francis Journals, vol. 6(4), pages 217-231.
    7. de Boer, David Boles & Evans, Lewis, 1996. "The Economic Efficiency of Telecommunications in a Deregulated Market: The Case of New Zealand," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 72(216), pages 24-35, March.
    8. Olivier Boylaud & Giuseppe Nicoletti, 2001. "Regulation, market structure and performance in telecommunications," OECD Economic Studies, OECD Publishing, OECD Publishing, vol. 2001(1), pages 99-142.
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