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Regulation, Market Structure and Performance in Telecommunications

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  • Olivier Boylaud
  • Giuseppe Nicoletti

Abstract

The paper uses an original international database on regulation, market structure and performance in the telecommunications industry to investigate the effects of entry liberalisation and privatisation on productivity, prices and quality of service in long-distance (domestic and international) and mobile cellular telephony services in 23 OECD countries over the 1991-1997 period. The data on regulation and market structure is analysed by means of factor analysis techniques in order to group countries according to their policy and market environments. Controlling for technology developments and differences in economic structure, panel data estimates show that prospective competition (as proxied by the number of years remaining to liberalisation) and effective competition (as proxied by the share of new entrants or by the number of competitors) both bring about productivity and quality improvements and reduce the prices of all the telecommunications services considered in the analysis ... A partir d’une base de données originale sur la réglementation, la structure de marché et les performances dans l'industrie des télécommunications, ce document étudie les effets de la libéralisation, de l’ouverture des marchés et de la privatisation sur la productivité, les prix et la qualité du service pour les services de téléphonie fixe (interurbains et internationaux) et mobiles (cellulaires) pour 23 pays de l’OCDE au cours de la période 1991-1997. Les données sur la structure de marché et la réglementation sont analysées au moyen de techniques d'analyse factorielle afin de grouper les pays en fonction des politiques suivies et les caractéristiques de leurs marchés. En utilisant comme variables de contrôle les différences dans la technologie et la structure économique, les estimations réalisées sur les données de panel montrent que les anticipations de la concurrence (en utilisant comme proxy le nombre d'années restant avant la libéralisation) et la concurrence effective (en ...

Suggested Citation

  • Olivier Boylaud & Giuseppe Nicoletti, 2000. "Regulation, Market Structure and Performance in Telecommunications," OECD Economics Department Working Papers 237, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:237-en
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    File URL: http://dx.doi.org/10.1787/601531871521
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    Keywords

    entreprise publique; firm strategy and market performance; industrie réglementée et droit administratif; market structure; models with panel data; modèle de panel; public enterprises; regulated industries and administrative law; regulation and industrial policy; stratégie d'entreprise et performance; structure de marché; telecommunications; télécommunications;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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