IDEAS home Printed from https://ideas.repec.org/p/zbw/itsb24/302525.html
   My bibliography  Save this paper

Estimating the Impact of Chinese Foreign Direct Investment on Telecommunications Penetration Rates

Author

Listed:
  • Jiang, Peter

Abstract

This research examines the effects of Chinese Foreign Direct Investment (CFDI) on fixed broadband and mobile cellular penetration rates using panel data from the "China Global Investment Tracker," a dataset of publicly available CFDI transactions from 2005 to 2023. As CFDI grows to pre-COVID-19 levels, its impact on penetration rates may be influenced by the Chinese government's preferential treatment for its state-owned enterprises (SOE) and telecommunications companies. Policy makers interested in FDI liberalization would benefit from understanding the distinct consequences of FDI from different sources. Through panel data analysis, this paper estimates that CFDI has a positive relationship with fixed broadband subscriptions and a negative relationship with mobile cellular subscriptions. This paper also explores potential explanations for these trends and their policy implications.

Suggested Citation

  • Jiang, Peter, 2024. "Estimating the Impact of Chinese Foreign Direct Investment on Telecommunications Penetration Rates," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302525, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsb24:302525
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/302525/1/ITS-Seoul-2024-paper-125.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dr. Dinesh Mahajan, 2014. "Telecommunication Sector and Foreign Direct Investment: An Indian Perspective," Journal of Commerce and Trade, Society for Advanced Management Studies, vol. 9(2), pages 77-87, October.
    2. Lestage, Romain & Flacher, David & Kim, Yeonbae & Kim, Jihwan & Kim, Yunhee, 2013. "Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms?," Information Economics and Policy, Elsevier, vol. 25(1), pages 41-50.
    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. Mohammed Ali Ahmed Al-Sharafi & Shu Tong & Abdullah Aloqab, 2021. "The Effective Role of Internal Factors on Reconstructing Telecom Companies: The Case of Yemen Telecom," Sustainability, MDPI, vol. 13(3), pages 1-23, February.
    2. Binsfeld, Nico & Whalley, Jason & Pugalis, Lee, 2016. "Competing against yourself: State duopoly in the Luxembourg telecommunications industry," Telecommunications Policy, Elsevier, vol. 40(8), pages 791-803.
    3. Agiakloglou, Christos & Polemis, Michael, 2015. "What determines demand for Telecommunications services? Evidence from the EU countries before and after liberalization," 26th European Regional ITS Conference, Madrid 2015 127119, International Telecommunications Society (ITS).
    4. Houpis, George & Rodriguez, Jose Maria & Ovington, Thomas & Serdarevic, Goran, 2015. "The impact of network competition in the mobile industry," 26th European Regional ITS Conference, Madrid 2015 127147, International Telecommunications Society (ITS).
    5. Roy, Martin, 2017. "The contribution of services trade policies to connectivity in the context of aid for trade," WTO Staff Working Papers ERSD-2017-12, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. Christos Agiakloglou & Michael Polemis, 2018. "The Impact of Structural Reforms on Telecommunications Performance," Journal of Industry, Competition and Trade, Springer, vol. 18(2), pages 209-222, June.
    7. Paulo Chahuara, 2020. "Análisis Empírico de la Relación entre Competencia e Inversión en el Servicio de Telefonía Móvil Peruano," Documentos de Trabajo 42, OSIPTEL.
    8. Liang Wang & Qiming Sun, 2022. "Market Competition, Infrastructure Sharing, and Network Investment in China’s Mobile Telecommunications Industry," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    9. Baek, Chulwoo & Jung, Euy-Young & Lee, Jeong-Dong, 2014. "Effects of regulation and economic environment on the electricity industry׳s competitiveness: A study based on OECD countries," Energy Policy, Elsevier, vol. 72(C), pages 120-128.
    10. Houngbonon, Georges Vivien & Jeanjean, François, 2016. "What level of competition intensity maximises investment in the wireless industry?," Telecommunications Policy, Elsevier, vol. 40(8), pages 774-790.
    11. David, Oladipo Olalekan, 2019. "Nexus between telecommunication infrastructures, economic growth and development in Africa: Panel vector autoregression (P-VAR) analysis," Telecommunications Policy, Elsevier, vol. 43(8), pages 1-1.
    12. Christos Agiakloglou & Michael Polemis, 2018. "Evaluating the liberalization process on Telecommunications services for EU countries," Economics and Business Letters, Oviedo University Press, vol. 7(3), pages 98-107.
    13. Roy, Martin, 2019. "Elevating services: Services trade policy, WTO commitments, and their role in economic development and trade integration," WTO Staff Working Papers ERSD-2019-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    14. George Houpis & Jose Maria Rodriguez & Goran Serdarević & Tom Ovington, 2016. "The Impact of Network Competition in the Mobile Industry," Competition and Regulation in Network Industries, , vol. 17(1), pages 32-54, March.
    15. Bruno, Clementina & Manello, Alessandro, 2015. "Benchmarking and effects of reforms in the fixed telecommunications industry: A DDF approach," Telecommunications Policy, Elsevier, vol. 39(2), pages 127-139.
    16. Xin Fu & Tangyou Wang & Hongxu Yang, 2023. "Does Service Trade Liberalization Promote Service Productivity? Evidence from China," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    17. Garrone, Paola & Zaccagnino, Michele, 2015. "Seeking the links between competition and telecommunications investments," Telecommunications Policy, Elsevier, vol. 39(5), pages 388-405.

    More about this item

    Keywords

    Foreign direct investment; China; Telecommunications; Broadband; Cellular; Panel data;
    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:zbw:itsb24:302525. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.itsworld.org/ .

    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.