Effect of Regulatory Reform on the Efficiency of Mobile Telecommunications

Yan Li and Catherine Waddams Price
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Yan Li: Centre for Competition Policy and Norwich Business School, University of East Anglia
Catherine Waddams Price: Centre for Competition Policy and Norwich Business School, University of East Anglia

No 2012-01, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: Regulatory reform of the mobile telecommunications sector has been introduced to improve productivity and competitiveness. We use Data Envelopment Analysis and Stochastic Frontier Analysis, and a second-stage econometric analysis to identify the effect of different aspects of reform on productivity and its constituent parts across twenty-two firms from seven countries over 1998-2007. While measures of firm performance are sensitive to the choice of methodology, we find robust evidence that competition and independent regulation improve firm efficiency. Privatized firms are not necessarily more efficient, but can improve productivity more quickly than their public counterparts.

Keywords: mobile telecommunications; competition; privatisation; independent regulator; reform; efficiency; total factor productivity; innovation; SFA; DEA (search for similar items in EconPapers)
JEL-codes: B41 K23 L00 L10 L50 L51 L96 (search for similar items in EconPapers)
Date: 2012-01-01
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Citations: View citations in EconPapers (2)

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