IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v37y2013i11p1071-1082.html
   My bibliography  Save this article

The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis

Author

Listed:
  • Yang, Anhyuk
  • Lee, Daeho
  • Hwang, Junseok
  • Shin, Jungwoo

Abstract

The telecommunications industry has a great ripple effect on the overall national economy. However, there is no consensus about what is the optimal regulation policy for the telecommunications industry. Regulations on the telecommunications industry are different by region (i.e. United States, European Union and Asia). A number of studies have been conducted on comparative efficiency analysis for different policies that apply stochastic frontier analysis or data envelope analysis. However, these comparative studies are inappropriate because the production functions for each region are not identical. Thus, this paper addresses meta-frontier methodology, which can reflect differences in production functions. The results indicate that the United States has the highest meta-frontier efficiency in contrast to previous research findings.

Suggested Citation

  • Yang, Anhyuk & Lee, Daeho & Hwang, Junseok & Shin, Jungwoo, 2013. "The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis," Telecommunications Policy, Elsevier, vol. 37(11), pages 1071-1082.
  • Handle: RePEc:eee:telpol:v:37:y:2013:i:11:p:1071-1082
    DOI: 10.1016/j.telpol.2013.02.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030859611300027X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2013.02.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    2. Majumdar, Sumit K, 1997. "Incentive Regulation and Productive Efficiency in the U.S. Telecommunications Industry," The Journal of Business, University of Chicago Press, vol. 70(4), pages 547-576, October.
    3. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    4. Huigen, Jos & Cave, Martin, 2008. "Regulation and the promotion of investment in next generation networks--A European dilemma," Telecommunications Policy, Elsevier, vol. 32(11), pages 713-721, December.
    5. Flacher, David & Jennequin, Hugues, 2008. "Is telecommunications regulation efficient? An international perspective," Telecommunications Policy, Elsevier, vol. 32(5), pages 364-377, June.
    6. Symeou, Pavlos C., 2011. "Economy size and performance: An efficiency analysis in the telecommunications sector," Telecommunications Policy, Elsevier, vol. 35(5), pages 426-440, June.
    7. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    8. David Flacher & Hugues Jennequin, 2008. "Is Telecommunication Regulation efficient? An International Perspective," Post-Print hal-00194618, HAL.
    9. Olivier Boylaud & Giuseppe Nicoletti, 2003. "Regulation, market structure and performance in telecommunications," OECD Economic Studies, OECD Publishing, vol. 2001(1), pages 99-142.
    10. George E. Battese & D. S. Prasada Rao, 2002. "Technology Gap, Efficiency, and a Stochastic Metafrontier Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 87-93, August.
    11. Lee, Daeho & Hwang, Junseok, 2011. "Network neutrality and difference in efficiency among Internet application service providers: A meta-frontier analysis," Telecommunications Policy, Elsevier, vol. 35(8), pages 764-772, September.
    12. Stern, Jon & Holder, Stuart, 1999. "Regulatory governance: criteria for assessing the performance of regulatory systems: An application to infrastructure industries in the developing countries of Asia," Utilities Policy, Elsevier, vol. 8(1), pages 33-50, March.
    13. John Cubbin & Jon Stern, 2006. "The Impact of Regulatory Governance and Privatization on Electricity Industry Generation Capacity in Developing Economies," The World Bank Economic Review, World Bank, vol. 20(1), pages 115-141.
    14. Ahreum Hong & Daeho Lee & Junseok Hwang, 2011. "Metafrontier Production Function Analysis of Horizontal and Vertical Integration in Korea's Cable TV Industry," Journal of Media Economics, Taylor & Francis Journals, vol. 24(4), pages 221-236, November.
    15. Waverman, Leonard & Koutroumpis, Pantelis, 2011. "Benchmarking telecoms regulation - The Telecommunications Regulatory Governance Index (TRGI)," Telecommunications Policy, Elsevier, vol. 35(5), pages 450-468, June.
    16. Ros, Agustin J, 1999. "Does Ownership or Competition Matter? The Effects of Telecommunications Reform on Network Expansion and Efficiency," Journal of Regulatory Economics, Springer, vol. 15(1), pages 65-92, January.
    17. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    18. Chen, Zhuo & Song, Shunfeng, 2008. "Efficiency and technology gap in China's agriculture: A regional meta-frontier analysis," China Economic Review, Elsevier, vol. 19(2), pages 287-296, June.
    19. Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 1-54.
    20. Peitz, Martin, 2005. "Asymmetric access price regulation in telecommunications markets," European Economic Review, Elsevier, vol. 49(2), pages 341-358, February.
    21. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    22. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    23. Lien, Donald & Peng, Yan, 2001. "Competition and production efficiency: Telecommunications in OECD countries," Information Economics and Policy, Elsevier, vol. 13(1), pages 51-76, March.
    24. Tsai, Hsiang-Chih & Chen, Chun-Mei & Tzeng, Gwo-Hshiung, 2006. "The comparative productivity efficiency for global telecoms," International Journal of Production Economics, Elsevier, vol. 103(2), pages 509-526, October.
    25. Karl Lundvall & George Battese, 2000. "Firm size, age and efficiency: Evidence from Kenyan manufacturing firms," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 146-163.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Payam Hanafizadeh & Mohammad Mehrabioun, 2020. "A Systemic Framework for Business Model Design and Development -Part B: Practical Perspective," Systemic Practice and Action Research, Springer, vol. 33(6), pages 639-674, December.
    2. Quach, Sara & Thaichon, Park & Hewege, Chandana, 2020. "Triadic relationship between customers, service providers and government in a highly regulated industry," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    3. Lee, Kyoungsun & Park, Yuri & Lee, Daeho, 2018. "Measuring efficiency and ICT ecosystem impact: Hardware vs. software industry," Telecommunications Policy, Elsevier, vol. 42(2), pages 107-115.
    4. Bielov, Constantine & Mitomo, Hitoshi & Hämmäinen, Heikki, 2022. "Efficiency frontier of OECD MNOs: Multinational vs Domestic," Telecommunications Policy, Elsevier, vol. 46(5).
    5. Bielov, Constantine & Mitomo, Hitoshi & Hämmäinen, Heikki, 2021. "Efficiency Frontier of World MNOs: Multinational vs Domestic," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238011, International Telecommunications Society (ITS).
    6. Chen, Chun-Mei, 2019. "Evaluating the efficiency change and productivity progress of the top global telecom operators since OTT's prevalence," Telecommunications Policy, Elsevier, vol. 43(7), pages 1-1.
    7. Yuri Jo & Won Young Chung & Daeho Lee, 2020. "The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 7(3), pages 306-321, September.
    8. Massaro, Maria, 2017. "Next generation of radio spectrum management: Licensed shared access for 5G," Telecommunications Policy, Elsevier, vol. 41(5), pages 422-433.
    9. Hana Kim & Daeho Lee & Min Ho Ryu, 2018. "An Optimal Strategic Business Model for Small Businesses Using Online Platforms," Sustainability, MDPI, vol. 10(3), pages 1-11, February.
    10. Lee, Changjun & Lee, Daeho & Hwang, Junseok, 2015. "Platform openness and the productivity of content providers: A meta-frontier analysis," Telecommunications Policy, Elsevier, vol. 39(7), pages 553-562.
    11. Kyoungsun Lee & Yuri Park & Daeho Lee, 2016. "Effect of the ICT Ecosystem Structure on the Sustainable Growth of ICT Firms: A Metafrontier Analysis on China, South Korea, the United States, and Japan," Sustainability, MDPI, vol. 8(5), pages 1-9, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liao, Chun-Hsiung & Lien, Chun-Yu, 2012. "Measuring the technology gap of APEC integrated telecommunications operators," Telecommunications Policy, Elsevier, vol. 36(10), pages 989-996.
    2. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2011. "Technical efficiency and technology gaps in beef cattle production systems in Kenya: A stochastic metafrontier analysis," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108947, Agricultural Economics Society.
    3. Tanko, Mohammed & Ismaila, Salifu, 2021. "How culture and religion influence the agriculture technology gap in Northern Ghana," World Development Perspectives, Elsevier, vol. 22(C).
    4. Gatti, Nicolas & Lema, Daniel & Brescia, Victor, 2015. "A Meta-Frontier Approach to Measuring Technical Efficiency and Technology Gaps in Beef Cattle Production in Argentina," 2015 Conference, August 9-14, 2015, Milan, Italy 211647, International Association of Agricultural Economists.
    5. Li, Yan & Lyons, Bruce, 2012. "Market structure, regulation and the speed of mobile network penetration," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 697-707.
    6. Lee, Kyoungsun & Park, Yuri & Lee, Daeho, 2018. "Measuring efficiency and ICT ecosystem impact: Hardware vs. software industry," Telecommunications Policy, Elsevier, vol. 42(2), pages 107-115.
    7. Delnava, Haleh & Khosravi, Ali & El Haj Assad, Mamdouh, 2023. "Metafrontier frameworks for estimating solar power efficiency in the United States using stochastic nonparametric envelopment of data (StoNED)," Renewable Energy, Elsevier, vol. 213(C), pages 195-204.
    8. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2012. "Determinants of technical efficiency in beef cattle production in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125853, International Association of Agricultural Economists.
    9. Nwigwe, Cecilia & Okoruwa, Victor & Obi-Egbedi, Oghenerueme, 2015. "Efficiency differentials and technological gaps in beef cattle production systems in Nigeria," 2015 Conference, August 9-14, 2015, Milan, Italy 229377, International Association of Agricultural Economists.
    10. Salas-Velasco, Manuel, 2018. "Production efficiency measurement and its determinants across OECD countries: The role of business sophistication and innovation," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 60-73.
    11. Michael Hellwig & Dominik Schober & Luis Cabral, 2018. "Incentive Regulation: Evidence From German Electricity Networks," Working Papers 18-03, New York University, Leonard N. Stern School of Business, Department of Economics.
    12. Marijn Verschelde & Michel Dumont & Glenn Rayp & Bruno Merlevede, 2016. "Semiparametric stochastic metafrontier efficiency of European manufacturing firms," Journal of Productivity Analysis, Springer, vol. 45(1), pages 53-69, February.
    13. Lourdes Torres & Patricia Bachiller, 2013. "Efficiency of telecommunications companies in European countries," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 863-886, November.
    14. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    15. Joachim Nyemeck BINAM & Jim GOCKOWSKI & Guy Blaise NKAMLEU, 2008. "Technical Efficiency And Productivity Potential Of Cocoa Farmers In West African Countries," The Developing Economies, Institute of Developing Economies, vol. 46(3), pages 242-263, September.
    16. Hossein Mehrabi Boshrabadi & Renato Villano & Euan Fleming, 2008. "Technical efficiency and environmental‐technological gaps in wheat production in Kerman province of Iran," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 67-76, January.
    17. Kerstens, Kristiaan & O’Donnell, Christopher & Van de Woestyne, Ignace, 2019. "Metatechnology frontier and convexity: A restatement," European Journal of Operational Research, Elsevier, vol. 275(2), pages 780-792.
    18. Ndlovu, Patrick V. & Mazvimavi, Kizito & An, Henry & Murendo, Conrad, 2014. "Productivity and efficiency analysis of maize under conservation agriculture in Zimbabwe," Agricultural Systems, Elsevier, vol. 124(C), pages 21-31.
    19. Antti Saastamoinen, 2015. "Heteroscedasticity Or Production Risk? A Synthetic View," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 459-478, July.
    20. Zarkovic, Maja, 2020. "Cap-and-trade and produce at least cost? Investigating firm behaviour in the EU ETS," Working papers 2020/12, Faculty of Business and Economics - University of Basel.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:37:y:2013:i:11:p:1071-1082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.