Liberalization and efficiency in the European postal sector

Cipriano Quiros ()

Applied Economics Letters, 2011, vol. 18, issue 12, 1155-1158

Abstract: Market competition has been widely considered as one of the main determinants of business efficiency. This study evaluates this hypothesis for European postal operators. In particular, it takes advantage of the coexistence of various degrees of competition in national postal markets and the differences in regulations established among countries. For this purpose, a stochastic production frontier model is estimated, using a database of 17 European national postal operators. The results show that the degree of competition in domestic markets and the independence of national regulatory authorities are the main factors to explain the increase in efficiency in the postal sector. This reinforces the need for transposing the European regulatory framework into all national postal markets and opening them up to competition with no further delay.

Date: 2011
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DOI: 10.1080/13504851.2010.528350

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