IDEAS home Printed from https://ideas.repec.org/p/hal/cdiwps/hal-03151965.html
   My bibliography  Save this paper

Liberalization, Technology Adoption, and Stock Returns: Evidence from Telecom

Author

Listed:
  • Rabah Arezki
  • Vianney Dequiedt

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

  • Rachel Yuting Fan
  • Carlo Maria Rossotto

Abstract

The paper investigates the pace of technology adoption in telecom technology post liberalization and its effect on stock returns using a new global panel dataset. Results are twofold. First, evidence points to the complementarity between telecom liberalization and regulatory independence in driving a sustained pace of technology adoption. Second, results show a positive and economically significant effect of telecom adoption on stock returns pointing to significant spillovers of telecom to the rest of the economy.

Suggested Citation

  • Rabah Arezki & Vianney Dequiedt & Rachel Yuting Fan & Carlo Maria Rossotto, 2021. "Liberalization, Technology Adoption, and Stock Returns: Evidence from Telecom," CERDI Working papers hal-03151965, HAL.
    • Handle: RePEc:hal:cdiwps:hal-03151965
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-03151965
    as

    Download full text from publisher

    File URL: https://uca.hal.science/hal-03151965/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Geert Bekaert & Campbell R. Harvey, 2000. "Foreign Speculators and Emerging Equity Markets," Journal of Finance, American Finance Association, vol. 55(2), pages 565-613, April.
    2. Balazs Egert, 2009. "Infrastructure Investment in Network Industries: The Role of Incentive Regulation and Regulatory Independence," CESifo Working Paper Series 2642, CESifo.
    3. Bekaert, Geert & Harvey, Campbell R. & Lundblad, Christian, 2005. "Does financial liberalization spur growth?," Journal of Financial Economics, Elsevier, vol. 77(1), pages 3-55, July.
    4. Matteo Cervellati & Alireza Naghavi & Farid Toubal, 2018. "Trade liberalization, democratization, and technology adoption," Journal of Economic Growth, Springer, vol. 23(2), pages 145-173, June.
    5. Barro, Robert J & Sala-i-Martin, Xavier, 1997. "Technological Diffusion, Convergence, and Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 1-26, March.
    6. Laffont, Jean-Jacques & Rey, Patrick & Tirole, Jean, 1997. "Competition between telecommunications operators," European Economic Review, Elsevier, vol. 41(3-5), pages 701-711, April.
    7. Diego Comin & Bart Hobijn, 2010. "An Exploration of Technology Diffusion," American Economic Review, American Economic Association, vol. 100(5), pages 2031-2059, December.
    8. Rabah Arezki & Rachel Yuting Fan & Ha Nguyen, 2021. "Technology adoption and the middle‐income trap: Lessons from the Middle East and East Asia," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1711-1740, August.
    9. Diego A. Comin & Martí Mestieri, 2010. "An Intensive Exploration of Technology Diffusion," NBER Working Papers 16379, National Bureau of Economic Research, Inc.
    10. Justus Haucap & Ulrich Heimeshoff, 2014. "Google, Facebook, Amazon, eBay: Is the Internet driving competition or market monopolization?," International Economics and Economic Policy, Springer, vol. 11(1), pages 49-61, February.
    11. Robert W. Crandall, 2019. "The Dubious Antitrust Argument for Breaking Up the Internet Giants," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(4), pages 627-649, June.
    12. Cave, Martin, 2018. "How disruptive is 5G?," Telecommunications Policy, Elsevier, vol. 42(8), pages 653-658.
    13. Scott J. Wallsten, 2001. "An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 1-19, March.
    Full references (including those not matched with items on IDEAS)

    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. Rabah Arezki & Vianney Dequiedt & Rachel Yuting Fan & Carlo Maria Rossotto, 2021. "Working Paper 352 - Liberalization, Technology Adoption, and Stock Returns: Evidence from Telecom," Working Paper Series 2478, African Development Bank.
    2. Matteo Cervellati & Alireza Naghavi & Farid Toubal, 2018. "Trade liberalization, democratization, and technology adoption," Journal of Economic Growth, Springer, vol. 23(2), pages 145-173, June.
    3. Spolaore, Enrico & Wacziarg, Romain, 2014. "Long-Term Barriers to Economic Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 3, pages 121-176, Elsevier.
    4. Enrico Spolaore & Romain Wacziarg, 2012. "Long-Term Barriers to the International Diffusion of Innovations," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 8(1), pages 11-46.
    5. Keisuke Okada & Sovannroeun Samreth, 2024. "Do Political Regimes Matter for Technology Diffusion?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3409-3422, March.
    6. Jayasekara, Dinithi N. & Fredriksson, Per G., 2021. "Culture, intellectual property rights, and technology adoption," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 317-330.
    7. 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.
    8. Kristin J. Forbes, 2007. "The Microeconomic Evidence on Capital Controls: No Free Lunch," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 171-202, National Bureau of Economic Research, Inc.
    9. Diego Comin & Ramana Nanda, 2019. "Financial Development and Technology Diffusion," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(2), pages 395-419, June.
    10. Umutlu, Mehmet & Akdeniz, Levent & Altay-Salih, Aslihan, 2010. "The degree of financial liberalization and aggregated stock-return volatility in emerging markets," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 509-521, March.
    11. Henry, Peter B. & Lorentzen, Peter Lombard, 2003. "Domestic Capital Market Reform and Access to Global Finance: Making Markets Work," Research Papers 1820, Stanford University, Graduate School of Business.
    12. Yeboah Asuamah Samuel & Ohene Manu & T. B. Wereko, 2013. "A Review of Energy Consumption and Financial Development Nexus," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 1(11), pages 456-462.
    13. Shahbaz, Muhammad & Lean, Hooi Hooi, 2012. "Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia," Energy Policy, Elsevier, vol. 40(C), pages 473-479.
    14. Raouf Boucekkine & Benteng Zou, 2019. "A Pedagogical Note on Risk Sharing Versus Instability in International Financial Integration: When Obstfeld Meets Stiglitz," Open Economies Review, Springer, vol. 30(1), pages 179-190, February.
    15. Hasan, Iftekhar & Horvath, Roman & Mares, Jan, 2020. "Finance and wealth inequality," Journal of International Money and Finance, Elsevier, vol. 108(C).
    16. Nicholas Bloom & John Van Reenen & Heidi Williams, 2019. "A toolkit of policies to promote innovation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
    17. Hötte, Kerstin, 2023. "Demand-pull, technology-push, and the direction of technological change," Research Policy, Elsevier, vol. 52(5).
    18. Björn Brey, 2021. "The Long-run Gains from the Early Adoption of Electricity," Working Papers ECARES 2021-23, ULB -- Universite Libre de Bruxelles.
    19. Sulaiman, Saidu & Masih, Mansur, 2017. "Is liberalizing finance the game in town for Nigeria ?," MPRA Paper 95569, University Library of Munich, Germany.
    20. Söhnke M. Bartram & Gregory Brown & René M. Stulz, 2012. "Why Are U.S. Stocks More Volatile?," Journal of Finance, American Finance Association, vol. 67(4), pages 1329-1370, August.

    More about this item

    Keywords

    Liberalization; Technology adaption; Telecom; Regulation; Stock returns;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hal:cdiwps:hal-03151965. 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: Contact - CERDI - Université Clermont Auvergne (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.