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Trade imbalance in international message telephone services


  • Alleman, James
  • Madden, Gary G
  • Savage, Scott J


An econometric model is estimated to identify determinants of trade imbalance in international message telephone services markets. Results indicate that asymmetric market structure is important in explaining bilateral market imbalances for high income country pairs. For low and high income country pairs, GDP per capita is the dominant cause of traffic imbalances. The findings suggest that telecommunications liberalization policies are effective in reducing distortions in international traffic flows and settlement payments. However, liberalization should be accompanied by developmental programmes that enhance income per capita and telecommunications network investment in developing countries. Such programmes may be effective in providing a more equitable distribution of the gains from telecommunications reform across countries.

Suggested Citation

  • Alleman, James & Madden, Gary G & Savage, Scott J, 2000. "Trade imbalance in international message telephone services," MPRA Paper 11157, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11157

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    References listed on IDEAS

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    6. Gary Madden & Scott J. Savage, 2000. "Market Structure, Competition, and Pricing in United States International Telephone Service Markets," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 291-296, May.
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    1. repec:eee:iepoli:v:39:y:2017:i:c:p:26-35 is not listed on IDEAS
    2. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.
    3. Alberto Nucciarelli & Massimo Gastaldi & Nathan Levialdi, 2010. "Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets," Netnomics, Springer, vol. 11(3), pages 315-329, October.

    More about this item


    Trade imbalance; international message telephone services;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications


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