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Telecommunications Policies: Determinants and Impact

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  • Gual, Jordi
  • Trillas, Francesco

Abstract

This Paper presents new data, in the form of several indices, on liberalization policies and the independence of regulators for a cross section of countries. These indices are combined with a comprehensive set of performance, institutional and political data to analyse both the determinants and the impact of telecommunications policies. We find that liberalization policies are negatively associated with the degree to which countries have an interventionist tradition, but not with the partisan ideology of reforming governments. We also find that countries with weak protection of investors’ quasi-rents by other means, and countries with a larger incumbent, are more prone to create (at least legally) independent regulatory agencies. There is preliminary evidence with this dataset that, when the endogeneity of policies is taken into account, the creation of independent regulatory agencies and pro-entry policies have a significant positive effect on network penetration and a negative effect on productivity.

Suggested Citation

  • Gual, Jordi & Trillas, Francesco, 2004. "Telecommunications Policies: Determinants and Impact," CEPR Discussion Papers 4578, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4578
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    References listed on IDEAS

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    3. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages 672-694, November.
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    6. Daniel Kaufmann & Aart Kraay, 2002. "Growth without Governance," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Fall 2002), pages 169-230, August.
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    10. Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 421-452.
    11. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Multiproduct Firms, Product Differentiation, and Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
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    13. Paul Levine & Paul Levine & Jon Stern & Francesc Trillas, 2003. "Independent Utility Regulators: Lessons from Monetary Policy," School of Economics Discussion Papers 0403, School of Economics, University of Surrey.
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    Citations

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    Cited by:

    1. Geoff Edwards & Leonard Waverman, 2006. "The Effects of Public Ownership and Regulatory Independence on Regulatory Outcomes," Journal of Regulatory Economics, Springer, vol. 29(1), pages 23-67, January.
    2. Gaggero, Alberto A., 2007. "Regulatory risk in the utilities industry: An empirical study of the English-speaking countries," Utilities Policy, Elsevier, vol. 15(3), pages 191-205, September.
    3. Gasmi, Farid & Recuero Virto, Laura, 2010. "The determinants and impact of telecommunications reforms in developing countries," Journal of Development Economics, Elsevier, vol. 93(2), pages 275-286, November.
    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.
    5. Francesc Trillas & Miguel Angel Montoya, 2008. "The degree of commitment to regulator independence: measurement and impact," Hacienda Pública Española, IEF, vol. 185(2), pages 89-114, July.
    6. Agiakloglou, Christos & Gkouvakis, Michail, 2015. "Causal interrelations among market fundamentals: Evidence from the European Telecommunications sector," The Quarterly Review of Economics and Finance, Elsevier, vol. 55(C), pages 150-159.
    7. Joan Calzada & Francesc Trillas, 2005. "The interconnection prices in telecomunications: from theory to practice," Hacienda Pública Española, IEF, vol. 173(2), pages 85-125, June.
    8. Montoya, Miguel A. & Trillas, Francesc, 2007. "The measurement of the independence of telecommunications regulatory agencies in Latin America and the Caribbean," Utilities Policy, Elsevier, vol. 15(3), pages 182-190, September.
    9. Jayakar, Krishna & Martin, Brandie, 2012. "Regulatory governance in African telecommunications: Testing the resource curse hypothesis," Telecommunications Policy, Elsevier, vol. 36(9), pages 691-703.
    10. Stern, J. & Cubbin, J., 2004. "Regulatory effectiveness: the impact of regulation and regulatory governance arrangements on electricity industry outcomes: a review paper," Working Papers 04/01, Department of Economics, City University London.
    11. Evans, Joanne & Levine, Paul & Trillas, Francesc, 2008. "Lobbies, delegation and the under-investment problem in regulation," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 17-40, January.
    12. Bouras, Hela & Fekih, Bouthaina Soussi, 2013. "Quality institutional reform and economic performance: Case of telecommunications in the MENA region," MPRA Paper 55888, University Library of Munich, Germany.
    13. Antonio Estache & Ana Goicoechea & Marco Manacorda, 2006. "Telecommunications Reform and Performance – A Global View," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(3), pages 16-21, October.
    14. Gual Jordi & Trillas Francesc, 2006. "Telecommunications Policies: Measurement and Determinants," Review of Network Economics, De Gruyter, vol. 5(2), pages 1-24, June.
    15. repec:eee:joecas:v:12:y:2015:i:2:p:110-123 is not listed on IDEAS
    16. Stern, Jon, 2007. "Infrastructure regulatory institutions and their impact: Papers from CCRP, City University Workshop 2006," Utilities Policy, Elsevier, vol. 15(3), pages 161-164, September.
    17. Haney, Aoife Brophy & Pollitt, Michael G., 2011. "Exploring the determinants of “best practice” benchmarking in electricity network regulation," Energy Policy, Elsevier, vol. 39(12), pages 7739-7746.
    18. Li, Yan & Lyons, Bruce, 2012. "Market structure, regulation and the speed of mobile network penetration," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 697-707.
    19. Estache, Antonio & Goicoechea, Ana & Manacorda, Marco, 2006. "Telecommunications performance, reforms, and governance," Policy Research Working Paper Series 3822, The World Bank.
    20. Cubbin, J. & Stern, J., 2004. "Regulatory effectiveness: the impact of good regulatory governance on electricity industry capacity and efficiency in developing countries," Working Papers 04/04, Department of Economics, City University London.
    21. Li, Yan, 2011. "The competitive landscape of China’s telecommunications industry: Is there a need for further regulatory reform?," Utilities Policy, Elsevier, vol. 19(3), pages 125-133.

    More about this item

    Keywords

    institutions; liberalization; telecommunications;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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