Combining theories of regulation – Proposing a framework for analysing regulatory systems worldwide

Two main theories of regulation have been considered in the literature, namely regulatory intervention and regulatory governance. The paper draws on research in EU telecommunications to combine these previously independent theories and to propose a framework for the analysis of regulatory systems worldwide. The combination adds to present knowledge by embedding regulation into state hierarchy and market environment, which allows for a better understanding as to why regulatory output differs across countries and sectors. The proposed framework has the potential of predictive powers and suggests a ‘best practice’ regulatory system. Depending on the classification of the regulatory systems obtained from the application of the framework, best practice is predicted in the form of competitiveness of the regulated sector under consideration.