The Role of Institutional Design in the Conduct of Infrastructure Industry Reforms - An Illustration through Telecommunications in Developing Countries

The Southern African Journal of Information and Communication, No. 9, 2008

16 Pages Posted: 22 Jun 2009

See all articles by Farid Gasmi

Farid Gasmi

University of Toulouse 1 - Toulouse School of Economics (TSE)

Paul Noumba

World Bank

Laura Recuero Virto

OECD Development Center

Date Written: June 19, 2009

Abstract

This paper is concerned with the role of political and economic institutions in the conduct of the infrastructure industries reform process in developing countries. Our point of departure is that the specific features of these countries' economies should be accounted for when considering policy design. We discuss the main results and policy lessons drawn from two studies of the telecommunications sector based on an econometric analysis of time-series-cross-sectional data on developed and developing countries. We synthesise the main empirical findings and policy implications pertaining to two issues. The first issue concerns the impact of the quality of institutions on the function of regulation. Our review points to the fact that political accountability of institutional systems is a key determinant of regulatory performance, in particular in developing countries. The second issue relates to the factors that shape the sectoral reforms themselves and the impact of these reforms on the development of the industry in developing countries. Our main conclusion is that countries' institutional risk and financial constraints are among the major factors that explain which reforms are actually implemented.

Keywords: Political accountability, reforms, infrastructure industries, developing countries

JEL Classification: L51, H11, L96, L97, C23

Suggested Citation

Gasmi, Farid and Noumba, Paul and Recuero Virto, Laura, The Role of Institutional Design in the Conduct of Infrastructure Industry Reforms - An Illustration through Telecommunications in Developing Countries (June 19, 2009). The Southern African Journal of Information and Communication, No. 9, 2008, Available at SSRN: https://ssrn.com/abstract=1422632

Farid Gasmi

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Paul Noumba

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-0151 (Phone)
202-676-9874 (Fax)

Laura Recuero Virto (Contact Author)

OECD Development Center ( email )

Paris

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