Concentration of the Mobile Telecommunications Markets and Countries' Competitiveness

Developing a database that includes 59 countries, our study sheds light on the role of mobile telecommunications markets' concentration on countries' competitiveness. Performing several estimations and using an instrumental variable that aims to explain the degree of concentration in mobile phone markets, we find that the higher is the concentration in this industry, the lower is the use of the information technology and communication (ICT). On the other hand, we also find that the use of ITC is positively correlated to countries' competitiveness. Thus, our results reveal positive spillover effects of the mobile phone industry on countries' competitiveness and suggest that all policies that aim to reduce concentration and market power in the mobile phone industry is welcomed.

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