The productivity effects of the liberalization of Japanese telecommunication policy

Hajime Oniki, Tae Hoon Oum, Rodney Stevenson, Yimin Zhang

doi:10.1007/bf01073598

The productivity effects of the liberalization of Japanese telecommunication policy

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説明

In the early 1980s, the Japanese government decided to pursue policies of liberalization that opened Japan's telecommunication market to competition and moved toward the privatization of Nippon Telegraph and Telephone (NTT), the dominant domestic telecommunication service provider. The purpose of this paper is to assess the effects of liberalization on the productive performance of NTT. To assess the productive consequences of liberalization, we first provide basic productivity measures for NTT. The Total Factor Productivity (TFP) measures are then decomposed to separate out the effects of liberalization from other factors such as scale, technology, and capacity utilization. The TFP decomposition is based on the parameter estimates of a dynamic cost model.