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Effect of Regulatory Reform on the Efficiency of Mobile Telecommunications

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  • Yan Li

    (Centre for Competition Policy and Norwich Business School, University of East Anglia)

  • Catherine Waddams Price

    (Centre for Competition Policy and Norwich Business School, University of East Anglia)

Abstract

Regulatory reform of the mobile telecommunications sector has been introduced to improve productivity and competitiveness. We use Data Envelopment Analysis and Stochastic Frontier Analysis, and a second-stage econometric analysis to identify the effect of different aspects of reform on productivity and its constituent parts across twenty-two firms from seven countries over 1998-2007. While measures of firm performance are sensitive to the choice of methodology, we find robust evidence that competition and independent regulation improve firm efficiency. Privatized firms are not necessarily more efficient, but can improve productivity more quickly than their public counterparts.

Suggested Citation

  • Yan Li & Catherine Waddams Price, 2012. "Effect of Regulatory Reform on the Efficiency of Mobile Telecommunications," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2012-01, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaccp:2012_01
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    2. See, Kok Fong & Li, Fei, 2015. "Total factor productivity analysis of the UK airport industry: A Hicks-Moorsteen index method," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 1-10.

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    More about this item

    Keywords

    mobile telecommunications; competition; privatisation; independent regulator; reform; efficiency; total factor productivity; innovation; SFA; DEA;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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