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Qualité institutionnelle et performance économique : cas des télécommunications dans les pays en voie de développement
[Institutional quality and economic performance through telecommunications in developing countries]


  • Recuero Virto, Laura
  • Gasmi, Farid
  • Belaid, Rabah


In recent years, a number of studies have shown that institutions are crucial to economic development. This literature has highlighted a relationship between the quality of the macro-institutional environment and the performance of reform policies conducted in some key sectors of the economy. This paper explores this relationship in the context of developing countries for the case of telecommunications, the sector among the infrastructure industries that has experienced worldwide probably the deepest structural changes. We specify an econometric model for a data base of observations on a panel of 32 developing countries covering fifteen years (1985-1999). The sample is decomposed into two panels according to GNP per inhabitant, thus allowing us to test for the existence of a level of revenue below which, once the effect of reforms variables, liberalization and privatization of the incumbent, has been controlled for, the quality of institutions plays only a minor role. We find that the impact of the institutional quality on the performance of the industry is more perceptible in the sample of countries with the lower GNP per inhabitant. Thus, within the developing countries, the marginal effect of an investment in improving the institutional quality is higher in the countries with lower revenues. This result might explain the recent trend of international donors to reallocate resources to long term policies for improving institutional mechanisms as a substitute to shorter-term aid policies focusing on sector-specific governance issues, in particular, in less developed countries.

Suggested Citation

  • Recuero Virto, Laura & Gasmi, Farid & Belaid, Rabah, 2009. "Qualité institutionnelle et performance économique : cas des télécommunications dans les pays en voie de développement
    [Institutional quality and economic performance through telecommunications in
    ," MPRA Paper 12889, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:12889

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    References listed on IDEAS

    1. Alonso-Borrego, Cesar & Arellano, Manuel, 1999. "Symmetrically Normalized Instrumental-Variable Estimation Using Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 36-49, January.
    2. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1989. "The Revenues-Expenditures Nexus: Evidence from Local Government Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(2), pages 415-429, May.
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    5. repec:reg:rpubli:194 is not listed on IDEAS
    6. Pablo T. Spiller & Sanny Liao, 2006. "Buy, Lobby or Sue: Interest Groups' Participation in Policy Making - A Selective Survey," NBER Working Papers 12209, National Bureau of Economic Research, Inc.
    7. Mariano Tommasi & Pablo T. Spiller, 2004. "The Institutions of Regulation," Working Papers 67, Universidad de San Andres, Departamento de Economia, revised Mar 2004.
    8. Mariano Tommasi & Pablo T. Spiller & Ernesto Stein, 2003. "Political Institutions, Policymaking Processes, and Policy Outcomes. An Intertemporal Transactions Framework," Working Papers 59, Universidad de San Andres, Departamento de Economia, revised Jul 2003.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    10. Farid Gasmi & Paul Noumba Um & Laura Recuero Virto, 2009. "Political Accountability and Regulatory Performance in Infrastructure Industries: An Empirical Analysis," World Bank Economic Review, World Bank Group, vol. 23(3), pages 509-531, October.
    11. Cubbin, John & Stern, John, 2005. "Regulatory effectiveness and the empirical impact of variations in regulatory governance - electricity industry capacity and efficiency in developing countries," Policy Research Working Paper Series 3535, The World Bank.
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    More about this item


    Political accountability; reforms; infrastructure industries; developing countries;

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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