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Telecommunications Policies: Measurement and Determinants

The Review of Network Economics

Vol. 5, Issue 2 - June 2006, pp 249 - 272

  Jordi Gual
IESE Business School (University of Navarra) and "la Caixa"

Francesc Trillas
Universitat AutÚnoma de Barcelona
E-mail: [email protected]

  This paper presents new data on telecommunications reform for a cross section of countries. We measure telecommunications reform along two dimensions: entry barriers and regulatory independence. This data set is combined with a comprehensive set of performance, institutional and political data to analyze the determinants of telecommunications policies. We find that entry barriers are positively associated with the degree to which countries have an interventionist legal tradition, but they are unrelated to the partisan ideology of reforming governments. We also find that countries with weak protection of investors' quasi-rents by other means, and countries with a larger incumbent, are more prone to create independent regulatory agencies, although the latter is a weaker result.

Keywords: Telecommunications reform, regulation, independence, entry barriers

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