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Geographic and Network Neighbors: Spillover Effects of Telecommunications Infrastructure

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  • Serdar Yilmaz
  • Kingley E. Haynes
  • Mustafa Dinc
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    Abstract

    This paper tests for spatial spillover effects of state-level telecommunications infrastructure investment on state output, using panel data for 48 U.S. states from 1970 through 1997. As information and communication technologies support more industrial locational freedom, states may use telecommunications infrastructure investment as a competitive tool for attracting factors of production. In a production-function framework, this effect would manifest itself as a negative output spillover effect from telecommunications infrastructure investment. Findings indicate that a state benefits from its own telecommunications infrastructure, but telecommunications investment by other states has a negative impact on its output growth path, and proximity amplifies this negative spillover effect. Copyright 2002 Blackwell Publishers Inc.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Regional Science.

    Volume (Year): 42 (2002)
    Issue (Month): 2 ()
    Pages: 339-360

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    Handle: RePEc:bla:jregsc:v:42:y:2002:i:2:p:339-360

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146

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    Cited by:
    1. Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society.
    2. Díaz, Luis & Andonova, Veneta Stefanova, 2007. "Political institutions and the development of telecommunications," Working Papers 2072/4176, Universitat Rovira i Virgili, Department of Economics.
    3. Andonova, Veneta & Diaz-Serrano, Luis, 2007. "Political Institutions and the Development of Telecommunications," IZA Discussion Papers 2569, Institute for the Study of Labor (IZA).

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