Telecommunications Infrastructure and Economic Development: A Simultaneous Approach
Roller, Lars-Hendrik, and
Leonard Waverman. 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach."
American Economic Review,
In this paper we investigate how telecommunications infrastructure affects economic growth. We use evidence from 21 OECD countries over a 20-year period to examine the impacts that telecommunications developments may have had. We jointly estimate a micromodel for telecommunication investment with a macro production function. We find evidence of a significant positive causal link, especially when a critical mass of telecommunications infrastructure is present. Interestingly, the critical mass appears to be at a level of telecommunications infrastructure that is near universal service.
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Roller, Lars-Hendrik (Wissenschaftszentrum Berlin, Humboldt U, and INSEAD)
Waverman, Leonard (London Business School and U Toronto)
O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O33: Technological Change: Choices and Consequences; Diffusion Processes
H54: National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock