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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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099316508232272076/IDU001afa79e0583604a84096e002ff3c2eee778 http://hdl.handle.net/10986/37920 |
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okr-10986-379202022-08-25T05:10:37Z How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector Arayavechkit, Tanida Jooste, Charl Arrieta, Ana Urrutia INFORMATION COMMUNICATION TECHNOLOGY (ICT) COMPETITION POLICY PRODUCTIVITY MARKUPS COMPETITION REGULATION MARKUP DISPERSION ICT AND ECONOMIC GROWTH PERUVIAN FIRM-LEVEL DATA 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. 2022-08-24T15:11:56Z 2022-08-24T15:11:56Z 2022-08 Working Paper http://documents.worldbank.org/curated/en/099316508232272076/IDU001afa79e0583604a84096e002ff3c2eee778 http://hdl.handle.net/10986/37920 English en Policy Research Working Papers;10151 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research Peru |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English English |
| topic |
INFORMATION COMMUNICATION TECHNOLOGY (ICT) COMPETITION POLICY PRODUCTIVITY MARKUPS COMPETITION REGULATION MARKUP DISPERSION ICT AND ECONOMIC GROWTH PERUVIAN FIRM-LEVEL DATA |
| spellingShingle |
INFORMATION COMMUNICATION TECHNOLOGY (ICT) COMPETITION POLICY PRODUCTIVITY MARKUPS COMPETITION REGULATION MARKUP DISPERSION ICT AND ECONOMIC GROWTH PERUVIAN FIRM-LEVEL DATA Arayavechkit, Tanida Jooste, Charl Arrieta, Ana Urrutia How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector |
| geographic_facet |
Peru |
| relation |
Policy Research Working Papers;10151 |
| description |
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. |
| format |
Working Paper |
| author |
Arayavechkit, Tanida Jooste, Charl Arrieta, Ana Urrutia |
| author_facet |
Arayavechkit, Tanida Jooste, Charl Arrieta, Ana Urrutia |
| author_sort |
Arayavechkit, Tanida |
| title |
How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector |
| title_short |
How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector |
| title_full |
How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector |
| title_fullStr |
How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector |
| title_full_unstemmed |
How Regulation and Enforcement of Competition Affects ICT Productivity : Evidence from Matched Regulatory-Production Surveys in Peru’s ICT Sector |
| title_sort |
how regulation and enforcement of competition affects ict productivity : evidence from matched regulatory-production surveys in peru’s ict sector |
| publisher |
World Bank, Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/099316508232272076/IDU001afa79e0583604a84096e002ff3c2eee778 http://hdl.handle.net/10986/37920 |
| _version_ |
1764488130488958976 |