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An assessment of telecommunications reform in developing countries

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Author Info
Fink, Carsten
Mattoo, Aaditya
Rathindran, Randeep

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Abstract

The authors analyze the effect of policy reform in basic telecommunications on sectoral performance using a new panel data set for 86 developing countries across Africa, Asia, the Middle East, and Latin America and the Caribbean over the period 1985 to 1999. The authors address three questions: 1) What impact do specific policy changes-relating to ownership and competition-have on sectoral performance? 2) How is the impact of change in any one policy affected by the implementation of the other, and by the overall regulatory framework? 3) Does the sequence in which reforms are implemented affect performance? The authors find that both privatization and competition lead to significant improvements in performance. But a comprehensive reform program, involving both policies and the support of an independent regulator, produced the largest gains-an 8 percent higher level of mainlines and a 21 percent higher level of productivity compared to years of partial and no reform. Interestingly, the sequence of reform matters: mainline penetration is lower if competition is introduced after privatization, rather than at the same time. The authors also find that autonomous factors, such as technological progress, have a strong influence on telecommunications performance, accounting for an increase of 5 percent a year in teledensity and 9 percent in productivity over the period 1985 to 1999.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2909.

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Date of creation: 31 Oct 2002
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Handle: RePEc:wbk:wbrwps:2909

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Keywords: Trade Finance and Investment Environmental Economics&Policies ICT Policy and Strategies Economic Theory&Research Labor Policies Environmental Economics&Policies Economic Theory&Research ICT Policy and Strategies Health Economics&Finance Education for the Knowledge Economy

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gual, Jordi & Trillas, Francesc, 2006. "Telecommunications policies: Measurement and determinants," IESE Research Papers D/630, IESE Business School. [Downloadable!]
  2. Pennings,Jacqueline & Kranenburg,Hans,van & Hagedoorn,John, 2005. "Past, Present and Future of the Telecommunications Industry," Research Memoranda 015, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  3. Jon Stern & John Cubbin, 2004. "Regulatory Effectiveness: The impact of regulation and regulatory governance arrangements on electricity industry outcomes: a review paper," City University Economics Discussion Papers 04/01, Department of Economics, City University, London. [Downloadable!]
  4. Stern, Jon & Cubbin, John, 2005. "Regulatory effectiveness : the impact of regulation and regulatory governance arrangements on electricity industry outcomes," Policy Research Working Paper Series 3536, The World Bank. [Downloadable!]
  5. Estache, Antonio & Goicoechea, Ana & Manacorda, Marco, 2006. "Telecommunications performance, reforms, and governance," Policy Research Working Paper Series 3822, The World Bank. [Downloadable!]
  6. John Cubbin & Jon Stern, 2004. "Regulatory effectiveness: The impact of good regulatory governance on electricity Industry capacity and efficiency in developing countries," City University Economics Discussion Papers 04/04, Department of Economics, City University, London. [Downloadable!]
  7. Estache, Antonio & Goicoechea, Ana & Trujillo, Lourdes, 2006. "Utilities reforms and corruption in developing countries," Policy Research Working Paper Series 4081, The World Bank. [Downloadable!]
    Other versions:
  8. Gasmi, Farid & Recuero Virto, Laura, 2005. "Telecommunications Technologies: Deployment in Developing Countries," MPRA Paper 2443, University Library of Munich, Germany. [Downloadable!]
  9. Fuchs, Michael & Cull, Robert & Clarke, George R.G., 2007. "Bank privatization in Sub-Saharan Africa : the case of Uganda commercial bank," Policy Research Working Paper Series 4407, The World Bank. [Downloadable!]
  10. Gual, Jordi & Trillas, Francesc, 2003. "Telecommunications policies: Determinants and impact," IESE Research Papers D/510, IESE Business School. [Downloadable!]
  11. Robert Stern, 2005. "The Place of Services in the World Economy," Working Papers 530, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  12. Jordi Gual & Francesc Trillas, 2006. "Telecommunications Policies: Measurement and Determinants," Review of Network Economics, Concept Economics, vol. 5(2), pages 249-272, June. [Downloadable!]
  13. Witold J. Henisz & Bennet A. Zelner & Mauro F. Guillen, 2004. "International Coercion, Emulation and Policy Diffusion: Market-Oriented Infrastructure Reforms, 1977-1999," William Davidson Institute Working Papers Series 2004-713, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  14. Mattoo, Aaditya & Hoekman, Bernard, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank. [Downloadable!]
  15. Alan V. Deardorff & Robert M. Stern, 2003. "Empirical Analysis of Barriers to International Services Transactions and the Consequences of Liberalization," Working Papers 505, Research Seminar in International Economics, University of Michigan. [Downloadable!]
  16. Gasmi, Farid & Noumba Um, Paul & Virto, Laura Recuero, 2006. "Political accountability and regulatory performance in infrastructure industries : an empirical analysis," Policy Research Working Paper Series 4101, The World Bank. [Downloadable!]
  17. Cubbin, John & Stern, John, 2005. "Regulatory effectiveness and the empirical impact of variations in regulatory governance - electricity industry capacity and efficiency in developing countries," Policy Research Working Paper Series 3535, The World Bank. [Downloadable!]
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