Trade imbalance in international message telephone services

James Alleman (), Gary G Madden and Scott J Savage

MPRA Paper from University Library of Munich, Germany

Abstract: An econometric model is estimated to identify determinants of trade imbalance in international message telephone services markets. Results indicate that asymmetric market structure is important in explaining bilateral market imbalances for high income country pairs. For low and high income country pairs, GDP per capita is the dominant cause of traffic imbalances. The findings suggest that telecommunications liberalization policies are effective in reducing distortions in international traffic flows and settlement payments. However, liberalization should be accompanied by developmental programmes that enhance income per capita and telecommunications network investment in developing countries. Such programmes may be effective in providing a more equitable distribution of the gains from telecommunications reform across countries.

Keywords: Trade imbalance; international message telephone services (search for similar items in EconPapers)
JEL-codes: L96 (search for similar items in EconPapers)
Date: 2000
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Related works:
Journal Article: Trade Imbalance in International Message Telephone Services (2000)
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:11157

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