The Multi-dimensions of Industry Regulation: A Cross-country Comparative Framework and Analytical Approach

Abstract:     
This study examines 131 telecommunications regulatory agencies in 80 countries to develop a generalizable cross-country comparative framework for industry regulation and determine the dimensions of industry regulation that explain most of the variation across nations. Previous studies which used comparative case methodologies were limited in quantifying the cross-country variation in industry regulation. This study brings a new methodological approach using factor analytic techniques to identify and quantify six distinct dimensions of industry regulation. They include market structure rules, industry standards rules, entry barrier rules, institutional stability, political appointment process and regulatory governance structure. Results reveal that the largest source of variation in industry regulation between countries is the level of institutional stability. This suggests that more focus and attention should be given to the role formal institutions play in industry regulation.

Number of Pages in PDF File: 47

Keywords: Industry regulation, cross-country comparative analysis, statutory law, regulatory institutions, telecommunications

JEL Classification: C81

working papers series