Asia-Pacific telecommunications liberalisation and productivity performance

Abstract

This study examines the growth in total factor productivity (TFP) of 12 Asia-Pacific telecommunications carriers for the period 1987 through 1990. Carriers are chosen to represent the stages of telecommunications liberalisation identified by the International Telecommunication Union (1995a). A model relating TFP growth to output growth, changes in output mix, technology change and market competition and private ownership is estimated on a unique data set obtained from telecommunications carrier annual reports. Empirical results show competition, private ownership, technology change and scale economies improve carrier TFP growth.Asia-Pacific telecommunications; liberalisation and productivity performance