Strategies for Telecoms to Improve Efficiency in the Production of Revenues: An Empirical Investigation in the Context of Transition Economies

Abstract

Despite sharing a common label, Transition Economies (TE) do not constitute a homogenous group; rather, these countries differ in many ways, including the level of economic development. These differences preclude TEs from adapting a uniform strategy towards increasing the level of relative efficiency of production of revenues from investments in Telecoms. In this study, conducted in the context of 18 TEs, we address two research questions. The first involves the identification of strategies appropriate to each TE for increasing the level of the relative efficiency of the production of revenue from Telecoms. The second question involves the identification of the appropriate implementation routes of the identified strategy. In order to answer the research questions of this study, we draw theoretical support from the framework of Neoclassical Growth Accounting and employ a three-step methodology utilizing Decision Trees, Neural Networks, and Data Envelopment Analysis.