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Economy size and performance: An efficiency analysis in the telecommunications sector

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  • Symeou, Pavlos C.
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    Abstract

    The existing empirical evidence on the relationship between economy size and performance has been inconclusive. This paper employs stochastic frontier analysis to estimate economic measures of efficiency for the telecommunications sectors of 139 economies and examine their relationship with economy size. Simultaneously, it controls for the effects of competition in telecommunications, privatization of state-owned providers, independent regulators, and the quality of political institutions on sector performance. The findings suggest that economy size has a positive but decreasing impact on sector performance. Small economies have an incentive to grow to improve sector performance, though larger size is not a sufficient condition for efficiency. Sector policy and the quality of polity may contribute significantly to sector performance.

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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 35 (2011)
    Issue (Month): 5 (June)
    Pages: 426-440

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    Handle: RePEc:eee:telpol:v:35:y:2011:i:5:p:426-440

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    Related research

    Keywords: Economy size Performance Telecommunications Policy Polity Stochastic frontier analysis;

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    Cited by:
    1. Covadonga Gijón Tascón & Teresa Garín-Muñoz, & Teodosio Pérez-Amaral, 2012. "Satisfaction and protection of individual mobile telecommunications consumers," Documentos de Trabajo del ICAE 2012-21, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    2. Byambaakhuu, Badamasuren & Kwon, Youngsun & Rho, Jaejeung, 2012. "Productivity grwoth and efficiency changes in the Mongolian mobile communications industry," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72521, International Telecommunications Society (ITS).

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