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Telephone Penetration and Economic Growth in the APEC Region: A Simultaneous Non-Linear GMM Approach

Author

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  • Eng Kooi Lim

    (Economic Policy and Enforcement Branch, Competition Bureau, Government of Canada, Gatineau, QC K1A 0C9, Canada)

  • Zhiqi Chen

    (Department of Economics, Carleton University, Ottawa, ON K1S 5B6, Canada)

Abstract

We examine the contributions of the telecommunications infrastructure to economic growth in the Asia-Pacific Economic Cooperation (APEC) economies during the period from 1982 to 2003 using a modified version of the model developed by Roller and Waverman (2001). Our estimation results show that, consistent with Roller and Waverman (2001), telecommunication infrastructure has a significant effect on economic growth in the APEC region and that the inclusion of country fixed effects is important for obtaining a more reliable estimate of the growth effect. Moreover, the magnitude of the growth effect is inversely related to the level of telecommunications infrastructure in the APEC economies. While the marginal effect of an increase in telecommunications infrastructure in the APEC region is smaller than that in the OECD countries found in Roller and Waverman (2001), the total contribution of telecommunication infrastructure to economic growth is larger in the former than in the latter.

Suggested Citation

  • Eng Kooi Lim & Zhiqi Chen, 2012. "Telephone Penetration and Economic Growth in the APEC Region: A Simultaneous Non-Linear GMM Approach," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(3), pages 339-362, September.
    • Handle: RePEc:fec:journl:v:7:y:2012:i:3:p:339-362
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-001-012-0015-4
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    Cited by:

    1. Purnama, Yudi Adhi & Mitomo, Hitoshi, 2018. "The impact of ICT on regional economic growth: Empirical evidence from 34 provinces of Indonesia," 29th European Regional ITS Conference, Trento 2018 184963, International Telecommunications Society (ITS).
    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

    APEC; growth; telecommunications;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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