Telecommunications infrastructure and economic development: a simultaneous approach
Subject
Economics
Publishing details
Regulation Initiative Working Paper Series
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
