The institutional environment and effects of telecommunication privatization and market liberalization in Asia

Are the privatization and market competition models resulting in the leveli ng of the supply-side playing field, and are they demand driven as expected ? Quantitative indicators of network expansion and efficiency provide a par tial and inconclusive picture. Instead, an evolutionary property rights fra mework is favored. Examined in detail are the institutional environments th at lead to particular types of property rights which in turn affect network expansion and efficiency. The article offers two conclusions: (a) introduc ing market competition is slow, messy and difficult to manage but, where pr esent, it is better for growth than privatization alone, and (b) network ex pansion and efficiency are most noticeable where adequate property rights a nd enforcement mechanisms are in place. It also conjectures that the "East Asia Model" toward network expansion may not be easily generalizable. (C) 2 000 Published by Elsevier Science Ltd.