Abstract
The study aims to measure the technical and intertemporal efficiency and find the primary source of productivity change on top three telecommunication firms in each country of ASEAN-5 (Indonesia, Malaysia, Thailand, Philippines, and Singapore) from 2010 to 2016. Data Envelopment Analysis (DEA) bootstrapping with 2000 iterations, DEA window, and Malmquist index are applied to calculate technical efficiency, intertemporal efficiency, and productivity change. The estimation results elucidate that, on average, the technical efficiency of firms is relatively low. On the opposite, the intertemporal efficiency results indicate that the mean efficiency score of each window is high. However, the LDW and LDP tend to be high, showing that the efficiency scores fluctuate. The Malmquist index calculation yields that technological progress possesses a significant contribution to productivity change.Keywords: Technical Efficiency, Intertemporal Efficiency, Productivity Change, Telecommunication Industry, ASEAN-5 JEL Classifications: L8, F6, O5, O1, O3
Highlights
Telecommunication has experienced a fundamental change, which affects other sectors and the economy
The development of telecommunication has brought an implication into the digital economy, which influences and transforms various sectors such as health, tourism, industry, education, agriculture, trade, transportation, and banking (Novelli, Schmitz, & Spencer, 2006; Osabutey & Okoro, 2015; Kiberu, Mars, & Scott, 2017; Romero et al, 2020)
This study aims to analyze the technical and intertemporal efficiency and productivity change of the telecommunication industry in ASEAN-5 during 2010-2016
Summary
Telecommunication has experienced a fundamental change, which affects other sectors and the economy. Dynamic world activities require high-speed access to information, and the telecommunication industry has been experiencing huge development, providing advancement of the services. The development of telecommunication has brought an implication into the digital economy, which influences and transforms various sectors such as health, tourism, industry, education, agriculture, trade, transportation, and banking (Novelli, Schmitz, & Spencer, 2006; Osabutey & Okoro, 2015; Kiberu, Mars, & Scott, 2017; Romero et al, 2020). The more significant economic activities induce financial investment related to the improvement of telecommunication (Dutta, 2001). The economic productivity is sourced from the telecommunication providing network for transferring information, which supports trade and generates economic growth (Madden & Savage, 2000)
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