Economics - Public Utilities Term Paper Example | Topics and Well Written Essays - 1750 words

Economics - Public Utilities - Term Paper Example Then a critical evaluation of empirical studies in this regard is done and country experiences are also discussed. The main countries included in the analysis are USA, UK, South Africa, Lebanon, Latin American nations, MENA nations, India, China, Sri Lanka and Bangladesh. The last section concludes the essay on the basis of the discussion given. The essay shows that initial conditions existing at the time of privatization process, the nature of privatization, the regulatory practices existing in a nation all determine the impact of privatization process in a nation. In the countries however, most evidence support our thesis statement in this regard. Telecommunications has been one of the rapidly growing sectors in countries all over the world. This sector provides significant contribution to the Gross Domestic Product of many nations (Li and Xu, 2002).Moreover, the sector contributes to other businesses by reducing their transaction costs and thus creating positive externalities. Thus telecommunication sector is considered to be of much economic and technological importance (Li and Xu, 2004). There had been significant changes in this sector transforming from a state owned, state operated an monopolistically behaved sector to a private owned and liberalized one since the 1980s with the privatization of British Telecom and the introduction of competition in the US long distance services (Wallsten, 2001).Based on the theoretical perspective son privatization, it has been argued that the privatization of telecommunication sector will result in increasing the sector’s efficiency and overall performance. The empirical studies show the results varying in different countries. Given this background, this essay critically evaluates the privatization process of telecommunications all over the world and its impact. This essay is