OECD Economic Studies

Discontinued
Frequency
Semiannual
ISSN: 
1609-7491 (online)
ISSN: 
0255-0822 (print)
http://dx.doi.org/10.1787/16097491
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OECD Economic Studies is the twice-yearly journal of the OECD Economics Department. It features articles in the area of applied macroeconomics and statistical analysis, generally with an international or cross-country dimension. Articles are derived from work of the Organization’s intergovernmental committees, including areas of work outside the Economics Department’s focus. Now published as a part of the OECD Journal.

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Article
 

Regulation, market structure and performance in telecommunications You do not have access to this content

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Author(s):
Olivier Boylaud, Giuseppe Nicoletti
06 June 2001
Pages:
59
Bibliographic information
No.:
4,
Volume:
2001,
Issue:
1
Pages:
99–142
http://dx.doi.org/10.1787/eco_studies-v2001-art4-en

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The paper uses an international database on regulation, market structure and performance in the telecommunications industry to investigate the effects of entry liberalisation and privatisation on productivity, prices and quality of service in long-distance (domestic and international) and mobile cellular telephony services in 23 OECD countries over the 1991-1997 period. The data on regulation and market structure is analysed by means of factor analysis techniques in order to group countries according to their policy and market environments. Controlling for technology developments and differences in economic structure, panel data estimates show that prospective competition (as proxied by the number of years remaining to liberalisation) and effective competition (as proxied by the share of new entrants or by the number of competitors) both bring about productivity and quality improvements and reduce the prices of all the telecommunications services considered in the analysis. No clear evidence could be found concerning the effects on performance of the ownership structure of the industry (as proxied by both the public share in the public telecommunications operators and years remaining to privatisation).

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