The Effect of Endogenous Regulation on Telecommunications Expansion and Efficiency in Latin America

Luis Gutiérrez

Journal of Regulatory Economics, 2003, vol. 23, issue 3, 257-86

Abstract: I examine the effect of reform on telecom performance using a second-generation regulatory framework index and panel data techniques to test how regulatory governance affected sector performance in 22 Latin American countries during the period 1980-1997. Sound regulatory governance in telecommunications has a positive impact on network expansion and efficiency, in both the static and dynamic specifications. Openness of markets to competition and divestment of former state-owned telco operators also contributed positively to better sector performance. The dynamic specification shows that past performance has its own strong effect on present (and perhaps future) performance. Copyright 2003 by Kluwer Academic Publishers

Date: 2003
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