Telecommunications industry efficiency: A comparative analysis of high and middle income countries

Oredegbe, Abayomi and Zhang, Yahua ORCID: https://orcid.org/0000-0003-1522-3402 (2020) Telecommunications industry efficiency: A comparative analysis of high and middle income countries. Telecommunications Policy, 44 (5):101958. pp. 1-11. ISSN 0308-5961

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Abstract

This study evaluates telecommunications industry efficiency in 19 countries grouped into high income countries (HICs) and middle income countries (MICs). Using data from 2001 to 2013 and a two-stage Data Envelopment Analysis (DEA), it finds that HICs outperformed MICs, however, the two groups of countries exhibited improved technical efficiency, managerial effectiveness, and operational scale. Additionally, time in deregulation is negatively associated with technical and scale efficiency in HICs, however, the influence is insignificant in MICs. Labour productivity drives technical efficiency in HICs. Also, it augments managerial resourcefulness in HICs and MICs, however, its influence on scale efficiency is immaterial. Revenue per subscription enhances technical efficiency and managerial effectiveness in the two groups of countries. The relationship with scale efficiency, which is positive in HICs is irrelevant in MICs. Capital intensity has insignificant influence on managerial effectiveness in the two clusters of countries, however, it undermines technical efficiency in HICs and scale efficiency in MICs. Gross national income per capita is inconsequential to scale enhancement. However, it contributes to technical efficiency in the two categories of countries and drives managerial performance in HICs. Efficiency performances in HICs and MICs are insensitive to the industry's concentration level. Inflation has insignificant influence on scale efficiency in HICs and MICs. Although, it drives technical efficiency and managerial performance in MICs, the influence in HICs is immaterial. The joint impact of labour productivity and capital intensity is irrelevant to operational scale in HICs and MICs, however, it is negatively associated with technical efficiency and managerial effectiveness in MICs. This empirical study provides additional insight that managers in the industry and policy makers will find useful during strategy formulation and policy deliberations.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 28 Jul 2020 03:10
Last Modified: 31 Jul 2020 01:56
Uncontrolled Keywords: DEA; Efficiency; Telecommunications; Tobit
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation
Socio-Economic Objectives (2008): B Economic Development > 89 Information and Communication Services > 8901 Communication Networks and Services > 890199 Communication Networks and Services not elsewhere classified
Identification Number or DOI: https://doi.org/10.1016/j.telpol.2020.101958
URI: http://eprints.usq.edu.au/id/eprint/39080

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