| Abstract: |
The impact of ICT on the efficiency of different national telecommunication
industries of the US, Germany, France, the UK and the Netherlands is analysed
by using a stochastic production possibility frontier approach. The relative
inefficiencies of these industries measured as distances to the general
production possibility frontier are estimated by a multi-country panel
maximum-likelihood-estimation. By determining the technology efficiency effect
frontiers for each single country one obtains a measure for the evolution of
relative inefficiencies over time for each country's industry. Looking at
these different patterns a common characteristic shape of stylised J-curves is
revealed. This can be interpreted as J-curves of adoption of innovations in
different national telecommunication industries. Since the troughs of these
J-curves occur in different years for different countries a phase delay in
adoption of innovations occurs differing from country to country. The time
period covered by the data include a time when the deregulation of the
telecommunication industries in these countries took place and the rapid
diffusion of two key innovations - the Internet and mobile communications -
changed the technological and organisational foundations everywhere. The
results show that even if the US telecommunication industry led in this wave
of major innovations as a first mover in comparison to the others and
diminished by this their relative efficiency disadvantage opposite the
European countries the EU countries still maintain a comparative efficiency
advantage inherited from the early 1980's. In particular after their delayed
adoption of the recent innovations like deregulation and Internet began there
during the late 1990's the rapid catch up of the US telecommunication industry
relative to the European industries has stalled. However, overall the
inefficiency differences between national telecommunication industries have
decreased in the long-run. Differences in the capability to establish and
maintain a competitive and innovative national industry, however, still
prevail between these countries even if they have become less pronounced as
before. |