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Competition Reform and Household Welfare: A Microsimulation Analysis of the Telecommunication Sector in Ethiopia

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dc.contributor.authorAraar, Abdelkrim
dc.contributor.authorRodriguez-Castelan, Carlos
dc.contributor.authorMalasquez, Eduardo A.
dc.contributor.authorGranguillhome Ochoa, Rogelio
dc.date.accessioned2021-01-21T16:52:36Z
dc.date.available2021-01-21T16:52:36Z
dc.date.issued2021-01
dc.description.abstractThis paper presents a novel method for estimating the likely welfare effects of competition reforms for both current and new consumers. Using household budget survey data from 2015/16 for Ethiopia and assuming a reform scenario that dilutes the market share of the telecommunications state-owned monopoly to 45 percent, the model predicts a 25.3 percent reduction in the price of mobile services and an increase of 4.6 million new users of mobile phone services. This reform is expected to generate a welfare gain of 1.37 percent among all consumers. Poverty rates are expected to decline by 0.31 percentage point, driven by a reduction of 0.22 percentage point for current consumers and 0.09 percentage point among new users. Inequality would increase by 0.23 Gini point since better-off consumers are more likely to reap the benefits of greater competition. This method represents a powerful tool for supporting the analysis of competition reforms in developing countries, particularly in sectors known for excluding significant segments of the population due to high consumer prices.en
dc.identifierhttp://documents.worldbank.org/curated/en/959881611167650082/Competition-Reform-and-Household-Welfare-A-Microsimulation-Analysis-of-the-Telecommunication-Sector-in-Ethiopia
dc.identifier.doi10.1596/1813-9450-9516
dc.identifier.urihttps://hdl.handle.net/10986/35030
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9516
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCOMPETITION REFORM
dc.subjectWELFARE EFFECTS
dc.subjectSIMULATIONS
dc.subjectINFORMATION AND COMMUNICATION TECHNOLOGY
dc.subjectPOVERTY REDUCTION
dc.subjectSHARED PROSPERITY
dc.subjectCONSUMPTION
dc.subjectSTATE-OWNED ENTERPRISES
dc.subjectTELECOMMUNICATIONS
dc.titleCompetition Reform and Household Welfareen
dc.title.subtitleA Microsimulation Analysis of the Telecommunication Sector in Ethiopiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleCompetition Reform and Household Welfare: A Microsimulation Analysis of the Telecommunication Sector in Ethiopia
okr.date.disclosure2021-01-20
okr.date.doiregistration2025-04-10T11:53:54.486543Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/959881611167650082/Competition-Reform-and-Household-Welfare-A-Microsimulation-Analysis-of-the-Telecommunication-Sector-in-Ethiopia
okr.guid959881611167650082
okr.identifier.doi10.1596/1813-9450-9516
okr.identifier.externaldocumentum090224b0881ea533_1_0
okr.identifier.internaldocumentum32764930
okr.identifier.reportWPS9516
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/959881611167650082/pdf/Competition-Reform-and-Household-Welfare-A-Microsimulation-Analysis-of-the-Telecommunication-Sector-in-Ethiopia.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryEthiopia
okr.statistics.combined1248
okr.statistics.dr959881611167650082
okr.statistics.drstats631
okr.topicPublic Sector Development::State Owned Enterprise Reform
okr.topicInformation and Communication Technologies::ICT Economics
okr.topicInformation and Communication Technologies::Information Technology
okr.topicInformation and Communication Technologies::Telecommunications Infrastructure
okr.topicPoverty Reduction::Inequality
okr.unitPoverty and Equity Global Practice
relation.isAuthorOfPublication2617abbe-b7ff-5678-991a-85d4f9583656
relation.isAuthorOfPublication.latestForDiscovery2617abbe-b7ff-5678-991a-85d4f9583656
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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