How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector
How the enforcement of competition regulation of information and communications technology affects growth depends on how well firms adapt to competitive pressure. This paper tests this empirically using Peruvian firm-level data matched to a compila...
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| Language: | English English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099316508232272076/IDU001afa79e0583604a84096e002ff3c2eee778 http://hdl.handle.net/10986/37920 |
| Summary: | How the enforcement of competition
regulation of information and communications technology
affects growth depends on how well firms adapt to
competitive pressure. This paper tests this empirically
using Peruvian firm-level data matched to a compilation of
information and communications technology regulations and
competition enforcement cases over 10 years. Based on the
theoretical dispersion in markups, the paper shows that by
increasing productivity, leaders in a market can avoid the
effects of competition while maintaining market share.
However, much depends on the regulatory structure, which
affects productive firms differently depending on how long
they have been in business. Highly productive older firms
translate regulations that make processes more complex (such
as raising quality standards) into more productivity;
productive younger firms benefit more from simplifying rules
that facilitate competition through lower entry barriers and
improved operating conditions. This feature is consistent
across different segments of the information and
communications technology sector. |
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