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The impact of trade liberalization in telecommunications services: The case of APEC countries

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  • Lim, Eng Kooi
  • Chen, Zhiqi

Abstract

This paper examines the impact of liberalizing the telecommunications services sector on investment and output in the Asia-Pacific Economic Cooperation (APEC) countries by estimating a system of four structural equations that takes into account the causal relationship between national income and telecommunications infrastructure. The degree of openness to trade in telecommunications is represented by a carefully constructed index that reflects a country’s trade and investment policy in terms of market access, national treatment and regulatory principles. One interesting finding from the empirical analysis is that the effects of trade liberalization depend on the risk rating of a country. In countries with relatively high risk ratings liberalization reduces investment in telecommunications.

Suggested Citation

  • Lim, Eng Kooi & Chen, Zhiqi, 2012. "The impact of trade liberalization in telecommunications services: The case of APEC countries," Telecommunications Policy, Elsevier, vol. 36(4), pages 274-281.
    • Handle: RePEc:eee:telpol:v:36:y:2012:i:4:p:274-281
    DOI: 10.1016/j.telpol.2012.01.003
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    Cited by:

    1. Han, Shengfei & Wang, Wei, 2014. "WTO accession, impediments to FDI, and the market opening of basic telecom services in China," China Economic Review, Elsevier, vol. 29(C), pages 68-81.
    2. Jose Luis Castillo Mezarina, 2021. "The impact of free trade agreements in national markets: Evidence from the telecommunications sector in Latin America," Review of International Economics, Wiley Blackwell, vol. 29(4), pages 860-903, September.
    3. Ziyu Yi & Long Wei & Xuan Huang, 2022. "Does Information-and-Communication-Technology Market Openness Promote Digital Service Exports?," Sustainability, MDPI, vol. 14(9), pages 1-19, April.

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