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Productivity Growth And Market Structure In Telecommunications

Author

Listed:
  • Gary Madden
  • Scott Savage

Abstract

This study examines sources of telecommunications sector productivity growth. Total factor productivity (TFP) growth is calculated using the Malmquist productivity index for a sample of 74 countries for the period 1991 through 1995. An econometric model is estimated which relates TFP growth to output growth, network digitisation, telecommunications development, output-mix, the business cycle and market structure. Model estimates suggest that higher digitisation rates dampen TFP growth in the short run, and cross-subsidisation of services creates inefficiency. However, developing countries can increase TFP growth through catch up, and increased privatisation and competition are conducive to productivity growth.

Suggested Citation

  • Gary Madden & Scott Savage, 2001. "Productivity Growth And Market Structure In Telecommunications," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(6), pages 493-512.
  • Handle: RePEc:taf:ecinnt:v:10:y:2001:i:6:p:493-512
    DOI: 10.1080/10438590100000019
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    Citations

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    Cited by:

    1. Gary Madden & Scott J. Savage & Jason Ng, 2003. "Asia–Pacific Telecommunications Liberalisation and Productivity Performance," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 91-102, March.
    2. Oredegbe, Abayomi & Zhang, Yahua, 2020. "Telecommunications industry efficiency: A comparative analysis of high and middle income countries," Telecommunications Policy, Elsevier, vol. 44(5).
    3. Antonelli, Cristiano, 2003. "The digital divide: understanding the economics of new information and communication technology in the global economy," Information Economics and Policy, Elsevier, vol. 15(2), pages 173-199, June.
    4. Shilin Zheng & Xinzhu Zhang, 2013. "The effect of the Chinese telecommunications reform on industrial growth: 1994–2007," Chapters, in: Michael Faure & Xinzhu Zhang (ed.), The Chinese Anti-Monopoly Law, chapter 7, pages 233-261, Edward Elgar Publishing.
    5. Youngwook Ko & Yanghon Chung & Hangyeol Seo, 2020. "Coopetition for Sustainable Competitiveness: R&D Collaboration in Perspective of Productivity," Sustainability, MDPI, vol. 12(19), pages 1-18, September.

    More about this item

    Keywords

    competition; privatisation; technical progress; telecommunications productivity JEL Classification: L10; L96; O30;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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