Telecommunications Infrastructure and Economic Development: A Simultaneous Approach
Citation:
Röller, L. & Waverman, L. (2001). “Telecommunications Infrastructure and Economic Development: A Simultaneous Approach”. In
American Economic Review, 91 (4), 909-923. Nashville: American Economic Association.
Work data:
Type of work: Article (academic)
Categories:
Economics | ICT4DAbstract:
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.
