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Telecommunications Policies: Determinants and Impact

  • Gual, Jordi
  • Trillas, Francesco

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.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4578.

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Date of creation: Aug 2004
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Handle: RePEc:cpr:ceprdp:4578
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  1. Besley, Timothy & Case, Anne, 2000. "Unnatural Experiments? Estimating the Incidence of Endogenous Policies," Economic Journal, Royal Economic Society, vol. 110(467), pages F672-94, November.
  2. Olivier Boylaud & Giuseppe Nicoletti, 2001. "Regulation, market structure and performance in telecommunications," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 99-142.
  3. Colin Xu, Lixin & Li, Wei & Zhen-Wei Qiang, Christine, 2001. "The Political Economy of Privatization and Competition: Cross-Country Evidence from the Telecommunications Sector," CEPR Discussion Papers 2825, C.E.P.R. Discussion Papers.
  4. Djankov, Simeon & La Porta, Rafael & López-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," CEPR Discussion Papers 2953, C.E.P.R. Discussion Papers.
  5. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
  6. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
  7. repec:cup:cbooks:9780521591591 is not listed on IDEAS
  8. 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.
  9. Daniel Kaufmann & Aart Kraay, 2002. "Growth without Governance," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  10. repec:ner:tilbur:urn:nbn:nl:ui:12-3125517 is not listed on IDEAS
  11. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
  12. Witold J. Henisz & Bennet A. Zelner, 2001. "The Institutional Environment for Telecommunications Investment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 123-147, 03.
  13. Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 421-52.
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