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The National and Regional Economic Consequences of Rapid Growth in Australia's Telecommunications Sector

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  • Giesecke, James

    (Centre of Policy Studies, Monash University, Melbourne (Australia))

Abstract

The Australian telecommunications services sector has experienced rapid growth in recent years, with real output increasing at an annual average rate of approximately 20 per cent since 1996/97. Impetuses to this growth were competition-promoting reforms and the diffusion and introduction of new telecommunications products and technologies. this paper investigates the national and regional economic consequences of the sector's growth over the period 1996/97-2001/02 using a dynamic multi-regional CGE model of the Australian economy. The modelling suggests that the growth of the sector has contributed to a substantial rise in national real GDP and real consumption (by around 2 and 1 per cent respectively). The range of regional real GDP impacts is diverse. In particular, regions, other than the major urban regions are found to have experienced relatively small increases in real GDP as a result of the sector's rapid growth, indicating that the structural and policy changes to which the sector has been subject have contributed to the concentration of economic activity in major urban regions.

Suggested Citation

  • Giesecke, James, 2006. "The National and Regional Economic Consequences of Rapid Growth in Australia's Telecommunications Sector," Economic Analysis and Policy, Elsevier, vol. 36(1-2), pages 61-97, March/Sep.
    • Handle: RePEc:eee:ecanpo:v:36:y:2006:i:1-2:p:61-97
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    Cited by:

    1. George Verikios & Xiao-guang Zhang, 2016. "Structural change and income distribution: the case of Australian telecommunications," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(4), pages 549-570, October.
    2. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 21st century: Making the evidence stronger," Telecommunications Policy, Elsevier, vol. 44(2).

    More about this item

    Keywords

    Regional; Telecommunication;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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