Recuero Virto, Laura and Gasmi, Farid and Belaid, Rabah (2009): Qualité institutionnelle et performance économique : cas des télécommunications dans les pays en voie de développement. Published in: Télécom ParisTech No. Working Paper ESS-09-01
Download (1330Kb) | Preview
In recent years, a number of studies have shown that institutions are crucial to economic development. This literature has highlighted a relationship between the quality of the macro-institutional environment and the performance of reform policies conducted in some key sectors of the economy. This paper explores this relationship in the context of developing countries for the case of telecommunications, the sector among the infrastructure industries that has experienced worldwide probably the deepest structural changes. We specify an econometric model for a data base of observations on a panel of 32 developing countries covering fifteen years (1985-1999). The sample is decomposed into two panels according to GNP per inhabitant, thus allowing us to test for the existence of a level of revenue below which, once the effect of reforms variables, liberalization and privatization of the incumbent, has been controlled for, the quality of institutions plays only a minor role. We find that the impact of the institutional quality on the performance of the industry is more perceptible in the sample of countries with the lower GNP per inhabitant. Thus, within the developing countries, the marginal effect of an investment in improving the institutional quality is higher in the countries with lower revenues. This result might explain the recent trend of international donors to reallocate resources to long term policies for improving institutional mechanisms as a substitute to shorter-term aid policies focusing on sector-specific governance issues, in particular, in less developed countries.
|Item Type:||MPRA Paper|
|Original Title:||Qualité institutionnelle et performance économique : cas des télécommunications dans les pays en voie de développement|
|English Title:||Institutional quality and economic performance through telecommunications in developing countries|
|Keywords:||Political accountability, reforms, infrastructure industries, developing countries|
|Subjects:||L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - Telecommunications
L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation
H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L97 - Utilities: General
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
|Depositing User:||Laura Recuero Virto|
|Date Deposited:||21. Jan 2009 09:12|
|Last Modified:||11. Feb 2013 23:44|
Alonso-Borrego, C. et M. Arellano, M., 1996, "Symmetrically normalized instrumental variable estimation using panel data", CEMFI Working Paper 9612.
Anderson, T. W. et C. Hsiao, 1981, "Estimation of dynamic model with error components", Journal of the American Statistical Association, 76: 598-606.
_______________________, 1982, "Formulation and estimation of dynamic model using panel data", Journal of econometrics, 18: 47-82.
Arellano, M. et S.R. Bond, 1991, "Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations'', Review of Economic Studies, 58: 277-97.
Blundell, R. et S. Bond, 1998, "Initial conditions and moment restrictions in dynamic panel data models", Journal of Econometrics, 87: 115-143.
Cubbin, J. et Stern J., 2005, "Regulatory effectiveness and the empirical impact of variations in regulatory governance: Electricity industry capacity and efficiency in developing countries", World Bank Policy Research Working Paper 3535.
Gasmi, F., Noumba, P., et L. Recuero Virto, 2006, "Political accountability and regulatory performance in infrastructure industries: An empirical analysis'', World Bank Policy Research Paper 4101.
Granger, C., 1969, "Investigating causal relations by econometric models and cross-spectral methods", Econometrica, 37 (3): 424-438.
Holtz-Eakin, D., Newey, W. et H.S. Rosen, 1988, "Estimating vector auto regressions with panel data", Econometrica, 56: 1371-95.
North, D. C., 1991, "Institutions", Journal of Economic Perspectives, 5: 97-112.
Roodman, D., 2005, "xtabond2: Stata Module to Extend xtabond Dynamic Panel Data Estimator", Document du Center for Global Development, Washington, DC.
Sevestre, P, 2002, Econométrie des données de panel, Dunod, pp. 109-152.
________ et A. Trognon, 1996, Dynamic linear models in the econometrics of panel data, ch. 7, Kluwer Academic Publishers.
Spiller, P., Stein, E. et M. Tommasi, 2003, "Political institutions, policymaking processes and policy outcomes. An inter temporal transactions framework", Design Paper DP1 for the project Political institutions, policymaking processes and policy outcomes.
Spiller, P.T. et M. Tommasi, 2003, "The institutions of regulation: An application to public utilities'', Handbook of Telecommunications Economics, Vol. 2.
_______________________, 2007, The institutional foundations of public policy in Argentina - A transactions cost approach", Cambridge University Press.
Spiller, P. et S. Liao, 2006, "Buy, lobby or sue: Interest groups’ participation in policy making - A selective survey", NBER Working Paper 12209.