19
economies. Regulatory independence has a significantly positive effect on telephone
penetration in both groups but has a significantly negative effect on cellphone penetration
in advanced economies.
Table 5 shows the regression results for main lines per one hundred inhabitants.
Among three indicators of telecommunications liberalization, competition and regulatory
independence have a significantly positive effect on telephone penetration in both groups
while privatization has an insignificant effect in both groups. The effects of competition
and privatization this study shows are different from other studies. Both studies of Ros’s
(1999) study of 110 countries, Ros and Banerjee’s (2000) study in Latin America and
Barros and Seabra’s (1999) study in OECD countries found that the effect of competition
on telephone penetration is insignificant. However, the results of this study suggest that
Table 5. Regression Results for Main Lines per 100 Inhabitants
Developing Countries
Advanced Economies
coefficients
(t-value) coefficients
(t-value)
RGDP
1.6289
(2.42) **
0.1839
(3.04) *
INV
-4.99e-04
(-1.26) 2.92e-04
(1.57)
POP
-4.59e-05
(-0.96) **
7.71e-05
(2.52) *
PRRES
-0.2402
(-2.05) **
-0.5482
(-2.48) **
POPDEN
114.577
(3.26) *
5.1679
(3.32) *
FREEDOM
-0.4350
(-1.48) -2.3590
(-3.94) **
REV
6.36e-04
(2.68) **
1.524e-04
(5.02) *
EMP
8.71e-06
(-0.32) -3.85e-05
(-2.42) **
COMP
2.6083
(2.63) **
3.1666
(2.95) *
PRIVATE
1.6529
(1.47) 0.8266
(0.75)
INDEP
2.2839
(2.44) **
3.5539
(3.23) *
CONSTANT
2.2095
(0.25)
36.1771
(8.73) *
R
2
(within) = 0.66
R
2
(within) = 0.79
F test that all u_i=0:
F(7, 57)=22.98,
P-Value=0.0000
F test that all u_i=0:
F(8, 68)=32.53,
P-Value=0.0000
* means the estimate is statistically significant at a 1% level
** means the estimate is statistically significant at a 5% level
*** means the estimate is statistically significant at a 10% level
Convention