Telecommunications productivity, catch-up and innovation

Gary Madden and Scott Savage ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study examines telecommunications productivity, technological catch-up and innovation in 74 countries for the period 1991-1995. A summary of partial productivity indicators is presented, and total factor productivity (TFP) growth is calculated using the Malmquist productivity change index. Decomposition of the Malmquist index provides preliminary evidence that developing countries can enhance productivity through catch-up. An econometric model is estimated that relates innovation to market size and two measures of market structure, viz., market concentration and private ownership. Model estimates support the Schumpeterian hypothesis that market size is conducive to innovation. However, the hypothesis that concentration (the dominant carrier's share of international message telephone service (IMTS) traffic) is positively related to innovation is rejected. Finally, the model suggests that increased private ownership of the dominant local-exchange carrier can enhance innovation.

Keywords: Catch-up; innovation; market structure; productivity; telecommunications (search for similar items in EconPapers)
JEL-codes: L96 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (19)

Published in Telecommunications Policy 23 (1999): pp. 65-81

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Journal Article: Telecommunications productivity, catch-up and innovation (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11448

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