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Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world

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  • Lam, Pun-Lee
  • Shiu, Alice
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    Abstract

    This paper studies the relationships between economic growth, telecommunications development and productivity growth of the telecommunications sector in different countries and regions of the world. In particular, this study assesses the impact of mobile telecommunications on economic growth and telecommunications productivity. The results indicate that there is a bidirectional relationship between real gross domestic product (GDP) and telecommunications development (as measured by teledensity) for European and high-income countries. However, when the impact of mobile telecommunications development on economic growth is measured separately, the bi-directional relationship is no longer restricted to European and high-income countries. This study also finds that countries in the upper-middle income group have achieved a higher average total factor productivity (TFP) growth than other countries. Countries with competition and privatization in telecommunications have achieved a higher TFP growth than those without competition and privatization. The diffusion of mobile telecommunications services is found to be a significant factor that has improved the TFP growth of the telecommunications sector in Central and Eastern Europe (CEE).

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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 34 (2010)
    Issue (Month): 4 (May)
    Pages: 185-199

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    Handle: RePEc:eee:telpol:v:34:y:2010:i:4:p:185-199

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    Keywords: Telecommunications Economic growth Total factor productivity;

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    Cited by:
    1. Covadonga Gijón Tascón & Teresa Garín-Muñoz, & Teodosio Pérez-Amaral, 2012. "Satisfaction and protection of individual mobile telecommunications consumers," Documentos de Trabajo del ICAE 2012-21, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    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. Byambaakhuu, Badamasuren & Kwon, Youngsun & Rho, Jaejeung, 2012. "Productivity grwoth and efficiency changes in the Mongolian mobile communications industry," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72521, International Telecommunications Society (ITS).
    4. 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).

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