IDEAS home Printed from https://ideas.repec.org/a/wly/reggov/v8y2014i1p149-163.html
   My bibliography  Save this article

Cross‐national variations in industry regulation: A factor analytic approach with an application to telecommunications

Author

Listed:
  • Susan Perkins

Abstract

This study applies factor analytic techniques to 131 telecommunications regulatory agencies in 80 countries to develop a comparative framework for better understanding the cross‐national institutional variation in industrial regulation. While some of these measures are specific to the telecom industry (i.e. World Trade Organization Basic Telecom Agreement participation), most of these regulatory variables can be applied to other regulated industries. After analyzing 30 variables, these techniques identify and quantify six distinct dimensions of industry regulation, namely, the competitive market structure rules, industry standards rules, entry barrier rules, institutional stability, political appointment process, and the regulatory governance structure. Despite the conventional wisdom that suggests the “rules of the game” are key to industry regulation, this study finds that the single largest source of cross‐national variation is the level of regulatory institutional stability (accounting for 16 percent of the total variation in cross‐national industry regulation). This suggests that more focus and attention should be given to the role formal institutions play in industry regulation. This study also finds differences in industry regulation between developed, developing, and least developed nations. Developed countries on average have significantly higher regulation, with the US being the highest. This suggests that regulation is a critical component of industrial regimes and the competitiveness of developed economies.

Suggested Citation

  • Susan Perkins, 2014. "Cross‐national variations in industry regulation: A factor analytic approach with an application to telecommunications," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 149-163, March.
    • Handle: RePEc:wly:reggov:v:8:y:2014:i:1:p:149-163
    DOI: 10.1111/rego.12039
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rego.12039
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rego.12039?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
    ---><---

    References listed on IDEAS

    as
    1. Priest, George L, 1993. "The Origins of Utility Regulation and the "Theories of Regulation" Debate," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 289-323, April.
    2. Ruthanne Huising & Susan S. Silbey, 2011. "Governing the gap : Forging safe science through relational regulation," Post-Print hal-02311930, HAL.
    3. Levy, Brian & Spiller, Pablo T, 1994. "The Institutional Foundations of Regulatory Commitment: A Comparative Analysis of Telecommunications Regulation," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 10(2), pages 201-246, October.
    4. Fabrizio Gilardi, 2008. "Delegation in the Regulatory State," Books, Edward Elgar Publishing, number 12818.
    5. Jacint Jordana & David Levi-Faur, 2005. "The Diffusion of Regulatory Capitalism in Latin America: Sectoral and National Channels in the Making of a New Order," The ANNALS of the American Academy of Political and Social Science, , vol. 598(1), pages 102-124, March.
    6. Koller, Roland H, II, 1973. "Why Regulate Utilities? To Control Price Discrimination," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 191-192, April.
    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. Calzada, Joan & Diaz-Serrano, Luis, 2023. "Conflicting national policies: The creation of the euro and the rebalancing of telecommunications prices," Telecommunications Policy, Elsevier, vol. 47(1).

    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. Andrés Pavón Mediano, 2020. "Agencies’ formal independence and credible commitment in the Latin American regulatory state: A comparative analysis of 8 countries and 13 sectors," Regulation & Governance, John Wiley & Sons, vol. 14(1), pages 102-120, January.
    2. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
    3. Jacint Jordana & Xavier Fernández‐i‐Marín & Andrea C. Bianculli, 2018. "Agency proliferation and the globalization of the regulatory state: Introducing a data set on the institutional features of regulatory agencies," Regulation & Governance, John Wiley & Sons, vol. 12(4), pages 524-540, December.
    4. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    5. Lætitia Guérin-Schneider & Michel Nakhla, 2012. "Emergence of an innovative regulation mode in water utilities in France: between commission regulation and franchise bidding," European Journal of Law and Economics, Springer, vol. 33(1), pages 23-45, February.
    6. Heikki Marjosola, 2021. "The problem of regulatory arbitrage: A transaction cost economics perspective," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 388-407, April.
    7. Bickenbach, Frank, 1999. "Regulierung und Wettbewerb im Bereich der Netzinfrastrukturen: Begründung, Regeln und Institutionen," Kiel Working Papers 910, Kiel Institute for the World Economy (IfW Kiel).
    8. Işık D. Özel & Aslı Unan, 2021. "Decoupling trends: Drivers of agency independence in telecommunications: An analysis of high and middle‐income countries," Regulation & Governance, John Wiley & Sons, vol. 15(1), pages 32-62, January.
    9. Xavier Fernández‐i‐Marín & Jacint Jordana & Andrea C. Bianculli, 2016. "Are regulatory agencies independent in practice? Evidence from board members in Spain," Regulation & Governance, John Wiley & Sons, vol. 10(3), pages 230-247, September.
    10. Laurenz Ennser‐Jedenastik, 2016. "Do parties matter in delegation? Partisan preferences and the creation of regulatory agencies in Europe," Regulation & Governance, John Wiley & Sons, vol. 10(3), pages 193-210, September.
    11. repec:gig:joupla:v:2:y:2010:i:1:p:3-30 is not listed on IDEAS
    12. Carlo Cambini & Yossi Spiegel, 2016. "Investment and Capital Structure of Partially Private Regulated Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(2), pages 487-515, April.
    13. Dean V. Williamson, 2010. "Financial-Market Contracting," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 24, Edward Elgar Publishing.
    14. Imam, M. & Jamasb, T. & Llorca, M. & Llorca, M., 2018. "Power Sector Reform and Corruption: Evidence from Electricity Industry in Sub-Saharan Africa," Cambridge Working Papers in Economics 1801, Faculty of Economics, University of Cambridge.
    15. Glen Dowell & Brad Killaly, 2009. "Effect of Resource Variation and Firm Experience on Market Entry Decisions: Evidence from U.S. Telecommunication Firms' International Expansion Decisions," Organization Science, INFORMS, vol. 20(1), pages 69-84, February.
    16. Magnus Söderberg, 2008. "Uncertainty and regulatory outcome in the Swedish electricity distribution sector," European Journal of Law and Economics, Springer, vol. 25(1), pages 79-94, February.
    17. Antonio Estache & Marco Manacorda & Tommaso M. Valletti, 2002. "Telecommunications Reform, Access Regulation, and Internet Adoption in Latin America," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 153-218, January.
    18. Eshien Chong & Carine Staropoli & Anne Yvrande-Billon, 2014. "Auction versus Negotiation in Public Procurement: Looking for Empirical Evidence," Post-Print hal-00512813, HAL.
    19. Mauricio Cárdenas Santa María & Zeinab Partow, 1998. "Oil, coffee and the dynamic commons problems in Colombia," Working Papers Series. Documentos de Trabajo 9206, Fedesarrollo.
    20. Paltseva, Elena & Toews , Gerhard & Troya-Martinez, Marta, 2022. "I’ll pay you later: Sustaining Relationships under the Threat of Expropriation," SITE Working Paper Series 59, Stockholm School of Economics, Stockholm Institute of Transition Economics.
    21. Mountain, Bruce R., 2019. "Ownership, regulation, and financial disparity: The case of electricity distribution in Australia," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.

    More about this item

    Statistics

    Access and download statistics

    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:wly:reggov:v:8:y:2014:i:1:p:149-163. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1748-5991 .

    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.