Institutions and Infrastructure Investment in Low and Middle-Income Countries: The Case of Mobile Communications
Federica Maiorano () and
Jon Stern ()
Additional contact information Federica Maiorano: Department of Economics, City University, London, http://www.city.ac.uk/economics/
Abstract:
This paper studies the relationship between regulation and performance in the mobile telecommunications sector. The analysis takes account of the economic impact of telecommunications infrastructure on aggregate income and of the role of country institutions in promoting economic growth. More specifically, we try to separate the impact of regulation from the potential indirect effects due to country institutions. We address these questions by estimating a system of equations for a panel of 30 low and middle-income countries over the 1990 - 2004 period. In summary, the evidence we present confirms the positive effect of regulatory institutions on telecommunications penetration and also highlights the contribution of a more widespread mobile telecommunications infrastructure to higher levels of GDP per capita.