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Institutions and Infrastructure Investment in Low and Middle-Income Countries: The Case of Mobile Communications

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Author Info
Federica Maiorano () (Department of Economics, City University, London)
Jon Stern () (Department of Economics, City University, London)

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Abstract

This paper studies the relationship between regulation and performance in the mobile telecommunications sector. The analysis takes account of the economic impact of telecommunications infrastructure on aggregate income and of the role of country institutions in promoting economic growth. More specifically, we try to separate the impact of regulation from the potential indirect effects due to country institutions. We address these questions by estimating a system of equations for a panel of 30 low and middle-income countries over the 1990 - 2004 period. In summary, the evidence we present confirms the positive effect of regulatory institutions on telecommunications penetration and also highlights the contribution of a more widespread mobile telecommunications infrastructure to higher levels of GDP per capita.

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Publisher Info
Paper provided by Department of Economics, City University, London in its series City University Economics Discussion Papers with number 07/06.

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Length: 32 pages
Date of creation: 14 Mar 2007
Date of revision:
Handle: RePEc:cty:dpaper:0706

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Web page: http://www.city.ac.uk/economics
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Related research
Keywords: Telecommunications; Regulation; Institutions; Growth;

Find related papers by JEL classification:
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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