The Political Economy of Telecoms and Electricity Internationalization in the Single Market

Journal of European Public Policy, Vol. 17, No. 7, 2010

34 Pages Posted: 5 May 2010 Last revised: 18 May 2010

See all articles by Judith Clifton

Judith Clifton

University of Cantabria

Daniel Díaz-Fuentes

Universidad de Cantabria

Julio Revuelta

University of Cantabria - Department of Economics

Date Written: April 4, 2010

Abstract

As a consequence of liberalization policies in the European Union (EU), a number of formerly inward-looking incumbents in telecommunications and electricity transformed themselves into some of the world’s leading Multinationals. The relationship between liberalization and incumbent internationalization, however, is contested. Three political economy arguments on this relationship are tested. The first claims that incumbents most exposed to domestic liberalization would internationalise most. The second asserts that incumbents operating where liberalization was restricted could exploit monopolistic rents to finance internationalisation. The third argument claims that a diversity of paths will be adopted by countries and incumbents vis-à-vis liberalization and internationalization. Using correlation and cluster analysis of EU telecoms and electricity incumbent Multinationals, evidence is found in favour of the third hypothesis. Internationalization as a response to liberalization took diverse forms in terms of timing and extent and this is best explained using a country, sector and firm logic.

Keywords: electricity, European Union, internationalization, liberalization, political economy, telecommunications

JEL Classification: L96, L94, P16, F23

Suggested Citation

Clifton, Judith and Diaz-Fuentes, Daniel and Revuelta, Julio, The Political Economy of Telecoms and Electricity Internationalization in the Single Market (April 4, 2010). Journal of European Public Policy, Vol. 17, No. 7, 2010. Available at SSRN: https://ssrn.com/abstract=1600054

Judith Clifton (Contact Author)

University of Cantabria ( email )

Avda. Los Castros, s/n
Santander 39005
Spain

Daniel Diaz-Fuentes

Universidad de Cantabria ( email )

Av. Los Castros s/n
Santander 39005, Cantabria 39005
Spain

HOME PAGE: http://personales.unican.es/diazd/

Julio Revuelta

University of Cantabria - Department of Economics ( email )

Av. Los Castros s/n
Santander 39005, Cantabria 39005
Spain

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