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Productivity Growth And Market Structure In Telecommunications


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  • Gary Madden
  • Scott Savage


This study examines sources of telecommunications sector productivity growth. Total factor productivity (TFP) growth is calculated using the Malmquist productivity index for a sample of 74 countries for the period 1991 through 1995. An econometric model is estimated which relates TFP growth to output growth, network digitisation, telecommunications development, output-mix, the business cycle and market structure. Model estimates suggest that higher digitisation rates dampen TFP growth in the short run, and cross-subsidisation of services creates inefficiency. However, developing countries can increase TFP growth through catch up, and increased privatisation and competition are conducive to productivity growth.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 10 (2001)
Issue (Month): 6 ()
Pages: 493-512

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Handle: RePEc:taf:ecinnt:v:10:y:2001:i:6:p:493-512

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Keywords: competition; privatisation; technical progress; telecommunications productivity JEL Classification: L10; L96; O30;

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Cited by:
  1. Madden, Gary G & Savage, Scott J & Ng, Jason, 2003. "Asia-Pacific telecommunications liberalisation and productivity performance," MPRA Paper 10884, University Library of Munich, Germany.
  2. Antonelli, Cristiano, 2003. "The digital divide: understanding the economics of new information and communication technology in the global economy," Information Economics and Policy, Elsevier, vol. 15(2), pages 173-199, June.


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