Explaining Telecoms and Electricity Internationalization in the European Union: A Political Economy Perspective
One consequence of the liberalization of certain services in the European Union was that a number of formerly inward-looking incumbents in telecommunications and electricity rapidly transformed themselves into some of the world’s leading Multinationals. However, the precise relationship between liberalization and incumbent internationalization is contested. This article tests three persuasive arguments derived from the political economy literature on this relationship. The first claims that those incumbents most exposed to domestic liberalization would internationalise most. The second asserts the opposite: incumbents operating where liberalization was restricted could exploit monopolistic rents to finance their aggressive internationalisation. The third argument claims that a diversity of paths will be adopted by countries and incumbents vis-à-vis liberalization and internationalization. Using correlation and cluster analysis of the sample of all major EU telecoms and electricity incumbent Multinationals evidence is found in favour of the third hypothesis. Internationalization as a response to liberalization took diverse forms in terms of timing and extent and this is best explained using a country, sector and firm logic.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cong Fu, 2008. "The evolution and transformation of European environmental policy and law," Asia Europe Journal, Springer, vol. 6(2), pages 245-259, June.
- Thomas, Steve, 2003. "The Seven Brothers," Energy Policy, Elsevier, vol. 31(5), pages 393-403, April.
- Chari, Anusha & Gupta, Nandini, 2008. "Incumbents and protectionism: The political economy of foreign entry liberalization," Journal of Financial Economics, Elsevier, vol. 88(3), pages 633-656, June.
- Judith Clifton & Francisco ComÃn & Daniel DÃaz Fuentes, 2005. "‘Empowering Europe'S Citizens’?," Public Management Review, Taylor & Francis Journals, vol. 7(3), pages 417-443, September.
- Guangzhong Li & James Refalo & Lifan Wu, 2008. "Causality-in-variance and causality-in-mean among European government bond markets," Applied Financial Economics, Taylor & Francis Journals, vol. 18(21), pages 1709-1720.
- Eising, Rainer, 2002. "Policy Learning in Embedded Negotiations: Explaining EU Electricity Liberalization," International Organization, Cambridge University Press, vol. 56(01), pages 85-120, December.
- van Kranenburg, H.L. (Hans) & Hagedoorn, John, 2008. "Strategic focus of incumbents in the European telecommunications industry: The cases of BT, Deutsche Telekom and KPN," Telecommunications Policy, Elsevier, vol. 32(2), pages 116-130, March.
- Fung , K.C. & Korhonen, Iikka & Li, Ke & Ng, Francis, 2008.
"China and central and eastern European countries : regional networks, global supply chain, or international competitors?,"
Policy Research Working Paper Series
4689, The World Bank.
- Fung, K.C. & Korhonen, Iikka & Li, Ke & Ng, Francis, 2008. "China and Central and Eastern European Countries: Regional networks, global supply chain or international competitors?," BOFIT Discussion Papers 9/2008, Bank of Finland, Institute for Economies in Transition.
- Hall, Peter A. & Soskice, David (ed.), 2001. "Varieties of Capitalism: The Institutional Foundations of Comparative Advantage," OUP Catalogue, Oxford University Press, number 9780199247752, March.
- Henisz, Witold J. & Zelner, Bennet A., 2006.
"Interest Groups, Veto Points, and Electricity Infrastructure Deployment,"
Cambridge University Press, vol. 60(01), pages 263-286, January.
- Witold J. Henisz & Bennet A. Zelner, 2004. "Interest Groups, Veto Points And Electricity Infrastructure Deployment," William Davidson Institute Working Papers Series 2004-711, William Davidson Institute at the University of Michigan.
- Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
- Domanico, Fabio, 2007. "Concentration in the European electricity industry: The internal market as solution?," Energy Policy, Elsevier, vol. 35(10), pages 5064-5076, October.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33037. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.