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Productivity analysis of the telecommunications sector in China

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  • Lam, Pun-Lee
  • Shiu, Alice

Abstract

This paper applies the data envelopment analysis (DEA) approach to measure the productivity performance of China's telecommunications sector at the provincial level. The results indicate that the efficiency scores for different provinces and regions are diverse: the efficiency scores of the provinces in the eastern region are significantly higher than those in the central and western regions. The differences in efficiency scores are mainly due to the differences in the operating environments of different provinces, rather than the efficiency performance of telecommunications enterprises. The results also suggest that labour redundancy and excess capacity of long-distance optical cable lines are major problems in China's telecommunications sector. After a period of rapid growth in investment and number of subscribers, it is time for the telecommunications sector to consolidate and to put more emphasis on productivity growth in order to meet the challenges posed by the World Trade Organization (WTO) commitments.

Suggested Citation

  • Lam, Pun-Lee & Shiu, Alice, 2008. "Productivity analysis of the telecommunications sector in China," Telecommunications Policy, Elsevier, vol. 32(8), pages 559-571, September.
  • Handle: RePEc:eee:telpol:v:32:y:2008:i:8:p:559-571
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    Citations

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    Cited by:

    1. 'Ofa, Siope Vakataki, 2009. "The WTO's telecommunications commitments and the credibility of telecommunications regulatory reforms in small island developing states," MPRA Paper 66184, University Library of Munich, Germany.
    2. Wang, Wei-Kang & Lu, Wen-Min & Kweh, Qian Long & Lai, Hsiao-Wen, 2014. "Does corporate social responsibility influence the corporate performance of the U.S. telecommunications industry?," Telecommunications Policy, Elsevier, vol. 38(7), pages 580-591.
    3. Hazera Akter & Suborna Barua, 2016. "International trade financing: a comparative study on the performance of state-owned and private commercial banks of Bangladesh," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 9(2), pages 164-186.
    4. Florian Ploeckl, 2016. "Uniform Service, Uniform Productivity? Regional Efficiency of the Imperial German Postal, Telegraph, and Telephone Service," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(2), pages 221-243, July.
    5. Shilin Zheng & Xinzhu Zhang, 2013. "The effect of the Chinese telecommunications reform on industrial growth: 1994–2007," Chapters,in: The Chinese Anti-Monopoly Law, chapter 7, pages 233-261 Edward Elgar Publishing.
    6. Pun-Lee Lam & Alice Shiu, 2011. "Reform of China’s Energy and Telecommunications Sectors," Chapters,in: International Handbook of Network Industries, chapter 23 Edward Elgar Publishing.

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