An empirical analysis on government regulatory effect of China´s telecommunication industry

This paper first quantify regulatory degree and regulatory effect of telecommunication industry in China, then establish multiple double logarithmic linear regression equation using time-series data between the year 1992 and 2009 and variables of regulatory degree and regulatory effect. The model is modified by the weighted least squares estimation model after testing its heteroskedasticity and other hypothesis tastings. Under the amended model and final test results, the paper analyzes and evaluates the effect of regulatory reform of China´s telecommunications industry, then draws the conclusion: Government regulatory reform has played a positive role in the improvement of overall development, price level and quality of China´s telecommunication industry.