Telecommunications Infrastructure and Economic Development: A Simultaneous Approach
American Economic Review
vol. 91,
no. 4, September 2001
(pp. 909-923)
Abstract
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.Citation
Roller, Lars-Hendrik, and Leonard Waverman. 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach." American Economic Review, 91 (4): 909-923. DOI: 10.1257/aer.91.4.909JEL Classification
- O47 Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- L96 Telecommunications
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock