The role of institutional design in the conduct of infrastructure industries reforms - An illustration through telecommunications in developing countries

Recuero Virto, Laura and Gasmi, Farid and Noumba Um, Paul (2009): The role of institutional design in the conduct of infrastructure industries reforms - An illustration through telecommunications in developing countries. Published in: Working Paper Télécom ParisTech No. ESS-09-02 (2009)

Abstract

This paper discusses the relationship between the quality of political and economic institutions and the performance of the infrastructure industries reform process in developing countries. Our point of departure is that, when thinking about this relationship, it is necessary to take into account the specific features of these countries’ economies (Gasmi and Recuero Virto, 2005, Laffont, 2005). Based on two econometric analysis of time-series-crosssectional data on the telecommunications sector, we present the empirical findings and policy implications pertaining two issues (Gasmi et al., 2006, Gasmi and Recuero Virto, 2007). The first issue concerns the impact of the quality of institutions on the performance of regulation. Our review points to the fact that political accountability of institutional systems is a key determinant of regulatory performance. The second issue relates to the factors that shape the sectorial reforms themselves and the impact on these reforms on the development of the industry. Our main conclusion is that countries’ institutional risk and financial constraints are among the major factors that explain which reforms are actually implemented.

• Item Type: MPRA Paper
• Language: English
• 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 - Panel Data Models ; Spatio-temporal Models

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