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Telecommunications productivity, catch-up and innovation

Author

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  • Madden, Gary G
  • Savage, Scott J

Abstract

This study examines telecommunications productivity, technological catch-up and innovation in 74 countries for the period 1991-1995. A summary of partial productivity indicators is presented, and total factor productivity (TFP) growth is calculated using the Malmquist productivity change index. Decomposition of the Malmquist index provides preliminary evidence that developing countries can enhance productivity through catch-up. An econometric model is estimated that relates innovation to market size and two measures of market structure, viz., market concentration and private ownership. Model estimates support the Schumpeterian hypothesis that market size is conducive to innovation. However, the hypothesis that concentration (the dominant carrier's share of international message telephone service (IMTS) traffic) is positively related to innovation is rejected. Finally, the model suggests that increased private ownership of the dominant local-exchange carrier can enhance innovation.

Suggested Citation

  • Madden, Gary G & Savage, Scott J, 1999. "Telecommunications productivity, catch-up and innovation," MPRA Paper 11448, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11448
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    References listed on IDEAS

    as
    1. Greenstein, Shane M & Spiller, Pablo T, 1995. "Modern Telecommunications Infrastructure and Economic Activity: An Empirical Investigation," Industrial and Corporate Change, Oxford University Press, vol. 4(4), pages 647-665.
    2. Cave, Martin & Donnelly, Mark P., 1996. "The pricing of international telecommunications services by monopoly operators," Information Economics and Policy, Elsevier, vol. 8(2), pages 107-123, June.
    3. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1991. "Telecommunications infrastructure and economic growth : An analysis of causality," Telecommunications Policy, Elsevier, vol. 15(6), pages 529-535, December.
    4. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, March.
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    Cited by:

    1. Grais, Wafik & Kantur, Zeynep, 2003. "The changing financial landscape : opportunities and challenges for the Middle East and North Africa," Policy Research Working Paper Series 3050, The World Bank.
    2. Zhang, Jing & Liang, Xiong-jian, 2012. "Promoting green ICT in China: A framework based on innovation system approaches," Telecommunications Policy, Elsevier, vol. 36(10), pages 997-1013.
    3. Chen, Yao & Iqbal Ali, Agha, 2004. "DEA Malmquist productivity measure: New insights with an application to computer industry," European Journal of Operational Research, Elsevier, vol. 159(1), pages 239-249, November.
    4. Byambaakhuu, Badamasuren & Kwon, Youngsun & Rho, Jaejeung, 2012. "Productivity grwoth and efficiency changes in the Mongolian mobile communications industry," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72521, International Telecommunications Society (ITS).
    5. Armando Calabrese & Domenico Campisi & Paolo Mancuso, 2002. "Productivity Change in the Telecommunications Industries of 13 OECD Countries," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 1(3), pages 209-223, December.
    6. repec:pal:jorsoc:v:60:y:2009:i:10:d:10.1057_jors.2008.103 is not listed on IDEAS
    7. Massón-Guerra, José Luis, 2007. "Evolución de la Eficiencia Productiva de una empresa privatizada: El Caso del Grupo Telefónica de España
      [Productive Efficiency in Telefonica]
      ," MPRA Paper 13463, University Library of Munich, Germany.
    8. Fazıl Gökgöz & Fatma Demir, 2014. "An Efficiency Analysis For The European Telecommunication Sector," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 141-158.
    9. Liao, Chun-Hsiung & Lin, Hsing-Yung, 2011. "Measuring operational efficiency of mobile operators in Japan and Korea," Japan and the World Economy, Elsevier, vol. 23(1), pages 48-57, January.
    10. Wafik Grais & Zeynep Kantur, 2002. "The Changing Financial Landscape: Opportunities and Challenges for The Middle East and North Africa," Working Papers 0208, Economic Research Forum, revised 14 Mar 2002.
    11. Kang, Chao-Chung & Wu, Chin-Chia, 2013. "Statistical precision of productivity change: A bootstrap application to Taiwan’s telecommunications industry," Telecommunications Policy, Elsevier, vol. 37(11), pages 1015-1032.
    12. Julieta Llungo-Ortiz, 2014. "Privatization of telecommunications in Latin America, an analysis of its efficiency," ERSA conference papers ersa14p1455, European Regional Science Association.

    More about this item

    Keywords

    Catch-up; innovation; market structure; productivity; telecommunications;

    JEL classification:

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

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