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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. Wong, Poh-Kam, 2001. "ICT Production and Diffusion in Asia Digital Dividends or Digital Divide?," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  3. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, vol. 4(4), pages 278-286, December.
  4. 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.
  5. 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.
  6. 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.
  7. Nirvikar Singh, 2004. "Information Technology as an Engine of Broad-Based Growth in India," Development and Comp Systems 0412012, EconWPA.
  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.
  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.
  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. 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).
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Citations

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Cited by:
  1. 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.
  2. 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).
  3. António Madureira & Nico Baken & Harry Bouwman, 2011. "Value of digital information networks: a holonic framework," Netnomics, Springer, vol. 12(1), pages 1-30, April.
  4. Gasmi, Farid & Ivaldi, Marc & Recuero Virto, Laura, 2009. "An empirical analysis of cellular demand in South Africa," CEPR Discussion Papers 7153, C.E.P.R. Discussion Papers.
  5. 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).
  6. Kangni Kpodar & Mihasonirina Andrianaivo, 2011. "ICT, Financial Inclusion, and Growth Evidence from African Countries," IMF Working Papers 11/73, International Monetary Fund.
  7. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, vol. 11(3), pages 205-220, October.
  8. 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.
  9. 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.
  10. Biancini, Sara, 2011. "Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market," Telecommunications Policy, Elsevier, vol. 35(3), pages 238-249, April.
  11. 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.

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