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Total factor productivity growth in Uganda's telecommunications industry

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  • Hisali, Eria
  • Yawe, Bruno
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    Abstract

    The telecommunication sector is usually thought to be characterized by high productivity growth rates arising from increasing returns to scale. The actual productivity patterns in the sector, however, need to be empirically determined. A panel data set was assembled and a common set of input and output indicators was constructed to support the estimation of the Malmquist Total Factor Productivity index via input-oriented Data Envelopment Analysis. A general specification encompassing all available input and output data was employed to obtain the average total factor productivity changes for the sector. Over the study period, there was total factor productivity growth in Uganda's telecommunications industry, which was mainly due to technical or technological progress as opposed to technical efficiency. These results indicate the existence of a potential for tariff reduction via the X-factor in the price cap formula.

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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 35 (2011)
    Issue (Month): 1 (February)
    Pages: 12-19

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    Handle: RePEc:eee:telpol:v:35:y:2011:i:1:p:12-19

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    Related research

    Keywords: Telecommunications Total factor productivity Data envelopment analysis Malmquist;

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