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Telecommunications and economic development: Econometric analysis of the US experience

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  • Dholakia, Ruby Roy
  • Harlam, Bari

Abstract

Investment in the telecommunications infrastructure can be justified because of the positive impact on economic development. Using statistical data for the 50 states of the USA, econometric analysis suggests that the influence of telecommunications is very strong when it is viewed as the only developmental input as well as when it is compared with other inputs such as education, energy and physical infrastructure. The multiple regression analysis provides a comparative perspective on resource inputs which has not been available in past research. The analysis also suggests that it is not a question of simple trade-offs between investment in one input with that of another. Instead, investment has to be made in multiple inputs including education, telecommunications and physical infrastructure.

Suggested Citation

  • Dholakia, Ruby Roy & Harlam, Bari, 1994. "Telecommunications and economic development: Econometric analysis of the US experience," Telecommunications Policy, Elsevier, vol. 18(6), pages 470-477, August.
    • Handle: RePEc:eee:telpol:v:18:y:1994:i:6:p:470-477
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    Citations

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    Cited by:

    1. Olunifesi Adekunle Suraj, 2016. "Managing Telecommunications for Development: An Analysis of Intellectual Capital in Nigerian Telecommunication Industry," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-30, March.
    2. Saba, Charles Shaaba & David, Oladipo Olalekan, 2020. "Convergence patterns in global ICT: Fresh insights from a club clustering algorithm," Telecommunications Policy, Elsevier, vol. 44(10).
    3. David, Oladipo Olalekan, 2019. "Nexus between telecommunication infrastructures, economic growth and development in Africa: Panel vector autoregression (P-VAR) analysis," Telecommunications Policy, Elsevier, vol. 43(8), pages 1-1.
    4. Norman Baldwin & Stephen Borrelli, 2008. "Education and economic growth in the United States: cross-national applications for an intra-national path analysis," Policy Sciences, Springer;Society of Policy Sciences, vol. 41(3), pages 183-204, September.
    5. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 20th century: The building of an evidence base," Telecommunications Policy, Elsevier, vol. 44(2).
    6. Serdar Yilmaz & Mustafa Dinc, 2002. "Telecommunications and Regional Development: Evidence from the U.S. States," Economic Development Quarterly, , vol. 16(3), pages 211-228, August.
    7. Charles Shaaba Saba & Nicholas Ngepah, 2021. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, December.
    8. Mona Badran, 2011. "The Impact of Broadband Infrastructure on Economic Growth in Egypt and Some Arab and Emerging Countries," Working Papers 591, Economic Research Forum, revised 06 Jan 2011.
    9. Nadiri, M. Ishaq & Nandi, Banani & Akoz, Kemal Kivanc, 2018. "Impact of modern communication infrastructure on productivity, production structure and factor demands of US industries: Impact revisited," Telecommunications Policy, Elsevier, vol. 42(6), pages 433-451.
    10. M. Ishaq NADIRI & Banani NANDI, 2015. "Modern Communication Technology and its Economic Impact: A Survey of Research Findings," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(100), pages 125-144, 4th quart.
    11. José Gómez-Barroso & Claudio Feijóo, 2012. "Volition versus feasibility: state aid when aid is looked upon favourably: the broadband example," European Journal of Law and Economics, Springer, vol. 34(2), pages 347-364, October.
    12. Shane M. Greenstein & Pablo T. Spiller, 1996. "Estimating the Welfare Effects of Digital Infrastructure," NBER Working Papers 5770, National Bureau of Economic Research, Inc.
    13. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E. & Bahmani, Sahar, 2019. "Short-term and long-term dynamics of venture capital and economic growth in a digital economy: A study of European countries," Technology in Society, Elsevier, vol. 57(C), pages 125-134.
    14. Charles Shaaba Saba & Nicholas Ngepah, 2022. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, October.

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