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The risk of privatizing the telecommunications sector in Brazil

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  • José Carlos Cavalcanti

Abstract

This paper discusses policies of privatisation towards the telecommunicationssector in Brazil. It raises some issues connected to the impact of these policies and presentssome characteristics of an econometric/computational model which can be used to analysesuch an impact. It argues that, in the light of the international experience, the adoption ofprivatisation policies, in general, is necessary but not sufficient. If detailed statistical analysesin respect to the industrial structure of the sectors involved are not properly carried out,it is likely that privatisation could not bring about expected efficiency gains. This argumentis based on the recent contributions to the theory of natural monopolies of the modemmulti product industries. JEL Classification: L33; L96.

Suggested Citation

  • José Carlos Cavalcanti, 1994. "The risk of privatizing the telecommunications sector in Brazil," Brazilian Journal of Political Economy, Center of Political Economy, vol. 14(2), pages 273-281.
    • Handle: RePEc:ekm:repojs:v:14:y:1994:i:2:p:273-281:id:1284
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1284/1269
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    Keywords

    Privatization; telecommunications;

    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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