Productivity Growth And Market Structure In Telecommunications

Gary Madden and Scott Savage ()

Economics of Innovation and New Technology, 2001, vol. 10, issue 6, 493-512

Abstract: This study examines sources of telecommunications sector productivity growth. Total factor productivity (TFP) growth is calculated using the Malmquist productivity index for a sample of 74 countries for the period 1991 through 1995. An econometric model is estimated which relates TFP growth to output growth, network digitisation, telecommunications development, output-mix, the business cycle and market structure. Model estimates suggest that higher digitisation rates dampen TFP growth in the short run, and cross-subsidisation of services creates inefficiency. However, developing countries can increase TFP growth through catch up, and increased privatisation and competition are conducive to productivity growth.

Keywords: competition, privatisation, technical progress, telecommunications productivity JEL Classification: L10; L96; O30, (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1080/10438590100000019

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