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Telecommunications infrastructure and economic development: a simultaneous approach

Subject

Economics

Publishing details

Regulation Initiative Working Paper Series

Authors / Editors

Waverman L;Roller L H

Publication Year

1997

Abstract

In this paper we investigate how telecommunications infrasture affects economic growth. This issue is important and has received considerable attention in the popular press concerning the creation of the 'information superhighway' and its potential impacts on the economy. We use evidence from 21 OECD countries over the past twenty years to examine the impacts that telecommunications developments may have had. We estimate a structural model which endogenizes telecommunication investment by specifying a micro-model of supply and demand for telecommunication investments. The micro-model is then jointly estimated with the macro-growth equation. After controlling for country-specific fixed effects, we find evidence of a positive casual link, provided that a critical mass of telecommunications infrasture is present

Publication Research Centre

Regulation Initiative (closed)

Series Number

11

Series

Regulation Initiative Working Paper Series

Available on ECCH

No


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