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Trade imbalance in international message telephone services

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  • James Alleman
  • Gary Madden
  • Scott Savage

Abstract

An econometric model is estimated to identify determinants of trade imbalance in international message telephone services markets. Results indicate that asymmetric market structure is important in explaining bilateral market imbalances for high income country pairs. For low and high income country pairs, GDP per capita is the dominant cause of traffic imbalances. The findings suggest that telecommunications liberalization policies are effective in reducing distortions in international traffic flows and settlement payments. However, liberalization should be accompanied by developmental programmes that enhance income per capita and telecommunications network investment in developing countries. Such programmes may be effective in providing a more equitable distribution of the gains from telecommunications reform across countries.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 32 (2000)
Issue (Month): 10 ()
Pages: 1311-1321

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Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1311-1321

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References

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  1. Pablo T. Spiller & Carlo G. Cardilli, 1997. "The Frontier of Telecommunications Deregulation: Small Countries Leading the Pack," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 127-138, Fall.
  2. Madden, Gary G & Savage, Scott J, 2000. "Market structure, competition, and pricing in United States international telephone service markets," MPRA Paper 11161, University Library of Munich, Germany.
  3. Cheong, Ken & Mullins, Mark, 1991. "International telephone service imbalances : Accounting rates and regulatory policy," Telecommunications Policy, Elsevier, vol. 15(2), pages 107-118, April.
  4. Leonard Waverman & Esen Sirel, 1997. "European Telecommunications Markets on the Verge of Full Liberalization," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 113-126, Fall.
  5. anonymous, 1978. "Communication," Management Science, INFORMS, vol. 24(9), pages 919-919, May.
  6. Schankerman, Mark, 1996. "Symmetric regulation for competitive telecommunications," Information Economics and Policy, Elsevier, vol. 8(1), pages 3-23, March.
  7. Bewley, Ronald & Fiebig, Denzil G, 1988. "Estimation of Price Elasticities for an International Telephone Demand Model," Journal of Industrial Economics, Wiley Blackwell, vol. 36(4), pages 393-409, June.
  8. Acton, Jan Paul & Vogelsang, Ingo, 1992. "Telephone Demand over the Atlantic: Evidence from Country-Pair Data," Journal of Industrial Economics, Wiley Blackwell, vol. 40(3), pages 305-23, September.
  9. Lago, Armando M, 1970. "Demand Forecasting Models of International Telecommunications and their Policy Implications," Journal of Industrial Economics, Wiley Blackwell, vol. 19(1), pages 6-21, November.
  10. Ergas, Henry & Paterson, Paul, 1991. "International telecommunications settlement arrangements : An unsustainable inheritance?," Telecommunications Policy, Elsevier, vol. 15(1), pages 29-48, February.
  11. Rea, John D & Lage, Gerald M, 1978. "Estimates of Demand Elasticities for International Telecommunications Services," Journal of Industrial Economics, Wiley Blackwell, vol. 26(4), pages 363-81, June.
  12. Hakim, Sam Ramsey & Lu, Ding, 1993. "Monopolistic settlement agreements in international telecommunications," Information Economics and Policy, Elsevier, vol. 5(2), pages 145-157, July.
  13. Hensher, David A, 1986. "Privatisation: An Interpretative Essay," Australian Economic Papers, Wiley Blackwell, vol. 25(47), pages 147-74, December.
  14. Yun, Kyoung-Lim & Choi, Hyun-Woo & Ahn, Byong-Hun, 1997. "The accounting revenue division in international telecommunications: Conflicts and inefficiencies," Information Economics and Policy, Elsevier, vol. 9(1), pages 71-92, March.
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Cited by:
  1. Alberto Nucciarelli & Massimo Gastaldi & Nathan Levialdi, 2010. "Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets," Netnomics, Springer, vol. 11(3), pages 315-329, October.
  2. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.

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