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Telecommunications Infrastructure And Economic Growth: Evidence From Developing Countries

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Author Info
Sridhar, Kala Seetharan ()
Sridhar, Varadharajan ()

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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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Publisher 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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Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. De Long, J. Bradford & Summers, Lawrence H., 1993. "How strongly do developing economies benefit from equipment investment?," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 395-415, December. [Downloadable!] (restricted)
  2. Garbade, Kenneth D & Silber, William L, 1978. "Technology, Communication and the Performance of Financial Markets: 1840-1975," Journal of Finance, American Finance Association, vol. 33(3), pages 819-32, June. [Downloadable!] (restricted)
  3. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models," Econometrica, Econometric Society, vol. 52(3), pages 701-20, May. [Downloadable!] (restricted)
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  4. 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. [Downloadable!]
  5. 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. [Downloadable!] (restricted)
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  6. Nirvikar Singh, 2004. "Information Technology as an Engine of Broad-Based Growth in India," Development and Comp Systems 0412012, EconWPA. [Downloadable!]
  7. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September. [Downloadable!] (restricted)
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  8. 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. [Downloadable!] (restricted)
  9. 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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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Muttur Ranganathan Narayana, 2008. "Telecommunication Services and Economic Growth: Evidence from India," CIRJE F-Series CIRJE-F-545, CIRJE, Faculty of Economics, University of Tokyo. [Downloadable!]
  2. Gasmi, Farid & Ivaldi, Marc & Recuero, Laura, 2008. "An Empirical Analysis of Cellular Demand in South Africa," IDEI Working Papers 531, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
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