Advanced Search
MyIDEAS: Login to save this article or follow this journal

Divestiture and Its Implications for Innovation and Productivity Growth in U.S. Telecommunications

Contents:

Author Info

  • Anusua Datta

    ()
    (School of Business Administration (Economics), Philadelphia University)

Registered author(s):

    Abstract

    This study has sought to determine the impact of policy changes that led to the breakup of the monopoly structure of U.S. telecommunications on productivity and research activities of AT&T. A simultaneous-equations model is used to examine the relationship between research intensity, market share, firm size, and total factor productivity (TFP) before and after divestiture. The results show that the effect of divestiture on productivity is negative but that competition has a significantly positive effect. Contrary to popular argument, competition led to significant increases in R&D investment by AT&T. The study also finds a strong and positive relationship between R&D and productivity in the postdivestiture period, marked by its absence in the predivestiture years. Scale economies remain important, indicating the industry continues to favor large firms.

    Download Info

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 69 (2003)
    Issue (Month): 3 (January)
    Pages: 644-558

    as in new window
    Handle: RePEc:sej:ancoec:v:69:3:y:2003:p:644-658

    Contact details of provider:
    Web page: http://www.southerneconomic.org/
    More information through EDIRC

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Enowbi Batuo, Michael, 2008. "The Role of Telecommunication Infrastructure in the Regional Economic Growth of Africa," MPRA Paper 19133, University Library of Munich, Germany.
    2. Enowbi Batuo, Michael, 2008. "The Role of Telecommunication Infrastructure in the Regional Economic Growth of Africa," MPRA Paper 12431, University Library of Munich, Germany, revised 07 Oct 2008.
    3. Lestage, Romain & Flacher, David & Kim, Yeonbae & Kim, Jihwan & Kim, Yunhee, 2013. "Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms?," Information Economics and Policy, Elsevier, Elsevier, vol. 25(1), pages 41-50.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:69:3:y:2003:p:644-658. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.