Regulatory Reforms in the Telecommunications Sector in Developing Countries: The Role of Democracy and Private Interests

44 Pages Posted: 29 Mar 2005

See all articles by Lixin Colin Xu

Lixin Colin Xu

World Bank - Development Research Group (DECRG)

Wei Li

University of Virginia - Darden School of Business; Centre for Economic Policy Research (CEPR)

Christine Zhen-Wei Qiang

World Bank - Information and Communications Technologies Department (ICT)

Date Written: March 7, 2005

Abstract

We investigate the determinants of regulatory reforms between 1990 and 1998 in 50 developing countries. We find that the reforms are attributable to differences in the configurations of interest groups and in the political structure - in particular, the decision-making mechanisms and the ideology of the legislature. Regulatory reforms are more likely in countries with strong pro-reform interest groups (a larger financial sector and a greater proportion of urban consumers) and less likely in countries where incumbent operators have already made large investments and hence have strong incentives to oppose the reforms. Democracy facilitates the actions of interest groups.

Keywords: democracy, telecommunications, regulation, political structure, special interest groups, developing countries

JEL Classification: L9, L5, H1

Suggested Citation

Xu, Lixin Colin and Li, Wei and Qiang, Christine Zhen-Wei, Regulatory Reforms in the Telecommunications Sector in Developing Countries: The Role of Democracy and Private Interests (March 7, 2005). Available at SSRN: https://ssrn.com/abstract=683863 or http://dx.doi.org/10.2139/ssrn.683863

Lixin Colin Xu (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
MC 3-427
Washington, DC 20433
United States
202-473-4664 (Phone)
202-522-1155 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/cxu

Wei Li

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
804-243-7691 (Phone)
804-243-7681 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/li.htm

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Christine Zhen-Wei Qiang

World Bank - Information and Communications Technologies Department (ICT) ( email )

Strategy Unit
2121 Pennsylvania Avenue NW
Washington, DC 20433
202-473-8259 (Phone)
202-473-1155 (Fax)

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