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Telecommunications Infrastructure And Economic Growth: Evidence From Developing Countries

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  • Sridhar, Kala Seetharan

    ()

  • Sridhar, Varadharajan

    ()

Abstract

In this study, we investigate empirically the relationship between telephone penetration and economic growth, using data for developing countries. Using 3SLS, we estimate a system of equations that endogenizes economic growth and telecom penetration. We find that the traditional economic factors explain demand for mainline and mobile phones, even in developing countries. We find positive impacts of mobile and landline phones on national output, when we control for the effects of capital and labor. We discuss the associated policy implications related to improvement of telecom penetration in developing countries.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 7 (2007)
Issue (Month): 2 ()
Pages: 37-56

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Handle: RePEc:eaa:aeinde:v:7:y:2007:i:2_3

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Related research

Keywords: Telecommunication; Economic growth; Reverse causality; Developing countries; Telephones;

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References

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  1. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1993. "Telecommunications infrastructure investment and economic development," Telecommunications Policy, Elsevier, vol. 17(6), pages 415-430, August.
  2. Jha, Raghbendra & Majumdar, Sumit K., 1999. "A matter of connections: OECD telecommunications sector productivity and the role of cellular technology diffusion," Information Economics and Policy, Elsevier, vol. 11(3), pages 243-269, September.
  3. Nirvikar Singh, 2004. "Information Technology as an Engine of Broad-Based Growth in India," Development and Comp Systems 0412012, EconWPA.
  4. Gourieroux Christian & Monfort Alain & Trognon A, 1982. "Pseudo maximum lilelihood methods : applications to poisson models," CEPREMAP Working Papers (Couverture Orange) 8203, CEPREMAP.
  5. Karen Eggleston & Robert Jensen & Richard Zeckhauser, 2002. "Information and Communication Technologies, Markets and Economic Development," Discussion Papers Series, Department of Economics, Tufts University 0203, Department of Economics, Tufts University.
  6. Röller, Lars-Hendrik & Waverman, Leonard, 2000. "Telecommunications Infrastructure And Economic Development: A Simultaneous Approach," CEPR Discussion Papers 2399, C.E.P.R. Discussion Papers.
  7. Seetharam Sridhar, Kala & Sridhar, Varadharajan, 2003. "The Effect of Telecommuting on Suburbanization: Empirical Evidence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 33(1).
  8. Wong, Poh-Kam, 2002. "ICT production and diffusion in Asia Digital dividends or digital divide?," Information Economics and Policy, Elsevier, vol. 14(2), pages 167-187, June.
  9. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, vol. 4(4), pages 278-286, December.
  10. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1991. "Telecommunications infrastructure and economic growth : An analysis of causality," Telecommunications Policy, Elsevier, vol. 15(6), pages 529-535, December.
  11. Norton, Seth W, 1992. "Transaction Costs, Telecommunications, and the Microeconomics of Macroeconomic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 175-96, October.
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Citations

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Cited by:
  1. Howard Griffin, 2013. "Has Mobile Phone Technology Had An Impact On The Quality Of Life In The Developing World," Far East Journal of Psychology and Business, Far East Research Centre, vol. 11(1), pages 1-9, June.
  2. Keesookpuna, Chutipong & Mitomob, Hitoshi, 2011. "Examining the relationship of communication service utilisation and productivity of labour in the developing country: A case study of Thailand," 8th Asia-Pacific Regional ITS Conference, Taipei 2011: Convergence in the Digital Age 52329, International Telecommunications Society (ITS).
  3. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, vol. 11(3), pages 205-220, October.
  4. Jain, Rekha, 2012. "Effectiveness of public funding for rural telecom and broadband: Lessons from the universal service obligation fund, India," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72541, International Telecommunications Society (ITS).
  5. Sunday Mauton A. Posu, 2006. "Information and Communication Technologies in the Nigerian Economy," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Human and Economic Resources, pages 327-337 Izmir University of Economics.
  6. Ianchovichina, Elena & Estache, Antonio & Foucart, Renaud & Garsous, Gregoire & Yepes, Tito, 2012. "Job creation through infrastructure investment in the Middle East and North Africa," Policy Research Working Paper Series 6164, The World Bank.
  7. Kangni Kpodar & Mihasonirina Andrianaivo, 2011. "ICT, Financial Inclusion, and Growth Evidence from African Countries," IMF Working Papers 11/73, International Monetary Fund.
  8. Sara Biancini, 2010. "Behind the Scenes of the Telecommunications Miracle: An Empirical Analysis of the Indian Market," CESifo Working Paper Series 3286, CESifo Group Munich.
  9. Gasmi, Farid & Ivaldi, Marc & Recuero Virto, Laura, 2008. "An Empirical Analysis of Cellular Demand in South Africa," IDEI Working Papers 531, Institut d'Économie Industrielle (IDEI), Toulouse.
  10. António Madureira & Nico Baken & Harry Bouwman, 2011. "Value of digital information networks: a holonic framework," Netnomics, Springer, vol. 12(1), pages 1-30, April.
  11. Keesookpuna, Chutipong & Mitomob, Hitoshi, 2012. "A developmental framework for ICT and labour productivity in the developing country: A case study of Thailand," 23rd European Regional ITS Conference, Vienna 2012 60378, International Telecommunications Society (ITS).
  12. Esteban Alfaro Cortés & José-Luis Alfaro Navarro, 2011. "Do ICT Influence Economic Growth and Human Development in European Union Countries?," International Advances in Economic Research, Springer, vol. 17(1), pages 28-44, February.

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