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Concentration of the mobile telecommunications markets and countries’ competitiveness

Author

Listed:
  • Bardey, David
  • Aristizábal, Danilo
  • Gómez, José Santiago
  • Sáenz, Bibiana

Abstract

This study examines how the level of concentration of a country’s mobile telecommunications market affects its competitiveness. We created a unique database with information on 59 countries, which we used to perform several estimations including an instrumental variable approach to explain the degree of concentration in mobile phone markets. Our first and direct estimation shows that the higher the concentration in this industry, the lower the countries’ competitiveness. In order to understand this positive correlation, we provide two additional estimations. First, using an instrumental variable, we find that the concentration in mobile telecommunications market explains the use of information and communications technology (ICT). Moreover, we also find that the use of ICT is positively correlated with countries’ competitiveness. Thus, our results confirm that the mobile phone industry has positive spillover effects on countries’ competitiveness and demonstrate the benefits of policies designed to reduce concentration and market power in the industry.

Suggested Citation

  • Bardey, David & Aristizábal, Danilo & Gómez, José Santiago & Sáenz, Bibiana, 2022. "Concentration of the mobile telecommunications markets and countries’ competitiveness," Telecommunications Policy, Elsevier, vol. 46(1).
    • Handle: RePEc:eee:telpol:v:46:y:2022:i:1:s0308596121001348
    DOI: 10.1016/j.telpol.2021.102230
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    More about this item

    Keywords

    Market structure; Concentration; Competitiveness; Telecommunications industry;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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