Determinants of Competition in a Context of Services Trade Liberalization: Analysis of Market Power of Firms in African Telecommunications Industry

Djiofack Zebaze Calvin

No 330242, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper assesses the determinant of market power in telecommunications industry in Africa using multiple-indicator-multiple-causes (MIMIC) of a single latent variable estimation. Based on aggregated data from 30 African countries between 1997 and 2004, three sets of results emerge from our empirical analysis: the African telecommunications industry face significant market power practices. Three main policy factors seem to be affecting negatively this market power: the unilateral efforts in terms of liberalization (increasing in number of operators) as well as strengthening of sectoral regulation, and the multilateral commitments to liberalize in the framework of the GATS. However, it appears that multimarket contact of telecommunications operators is an important factor enhancing the cooperative pricing behavior.

Keywords: International Relations/Trade; Agricultural and Food Policy (search for similar items in EconPapers)
Pages: 44
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:330242

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