Liberalization, Technology Adoption, and Stock Returns: Evidence from Telecom

Abstract

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Europe and Central Asia Economic Update, Fall 2021: Competition and Firm Recovery post COVID-19

“…For many ECA countries, improving the digital infrastructure and expanding access to high-quality digital connectivity will require boosting investment in communications infrastructure (Hallward-Driemeir et al 2020). Liberalized telecommunications, coupled with regulatory independence and efficient taxation of digital services, can catalyze private sector investment that lowers the cost of access and increases internet adoption and access to digital services, with significant spillovers to the rest of the economy (Arezki et al 2021;Rodriguez-Castelan et al 2021). Public investment can also play a role in supporting the digital transformation for firms by reducing cost barriers and accelerating the uptake of digital adoption, particularly for finance-constrained SMEs.…”