The Measurement Of Hidden Barriers To FDI In Basic Telecoms Industry Based On Stochastic Frontier Model

Telecommunications is the lifeblood of the national infrastructure,belonging to the public sector,involving the national economy and people's lives in all areas.Foreign investment in the telecom industry is the top priority of FDI policy research by governments.With the liberalization of the policy constraints of the telecom industry,hidden barriers to foreign investment restrictions gradually become prominent.In order to calculate the hidden barrier index after removing the policy constraints,we use the time-variant stochastic frontier FDI model to quantify the scale of hidden barriers: The stochastic frontier thought is introduced into the traditional service industry FDI model,and hidden barriers are treated as separate restrictive variables,which are absorbed by the inefficient item in the stochastic frontier FDI model,so as to calculate the hidden barrier index.The main conclusions of the study:1?Countries do exist hidden barriers to foreign investment in the telecom industry,and the hidden barrier index shows great differences in countries.(1)From the perspective of national development,the hidden barrier index in developed countries is obviously lower than that of developing countries.The mean values for developed and developing countries are 2.227 and 6.451 respectively.(2)For a single country,among all countries studied in this paper,China has the highest index of hidden barriers.Some countries with better economic development and higher per capita incomes in Africa and Central Asia(Algeria,Benin and Armenia)have lower hidden barriers.2? Labor wage,market monopoly,trade barrier index has negative effect on FDI inflow,high quality of labor,richness of residents,improvement of infrastructure and large-scale investment in fixed assets have positive attraction to FDI inflow.3?The policy barrier index(STRI)and the market monopoly are positively correlated with the hidden barrier index.The correlation coefficient between the barrier index calculated by the price tool(price difference)method and the hidden barrier index measured by stochastic frontier model is 0.704(remove China).