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More penetration, more growth? A panel cointegration analysis for the OECD countries

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  • Rudra P. Pradhan
  • Samadhan Bele
  • Shashikant Pandey

Abstract

The paper investigates the causal relationships between penetration rate, an indicator of telecommunications development, and economic growth of 34 OECD countries during the period 1960-2010. The panel model is used in this study. Based on the panel cointegration test results, is found that penetration rate has a long run relationship with economic growth. Moreover, there is also a bidirectional Granger causality between penetration rate and economic growth in both the short run and long run. The results of this study show clearly that telecommunications development plays an important role in the economic growth of the OECD countries. Furthermore, these results can reinforce the importance of economic growth for the continued development and use of various telecommunications services in those countries.

Suggested Citation

  • Rudra P. Pradhan & Samadhan Bele & Shashikant Pandey, 2013. "More penetration, more growth? A panel cointegration analysis for the OECD countries," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 9(4/5/6), pages 371-388.
    • Handle: RePEc:ids:ijpubp:v:9:y:2013:i:4/5/6:p:371-388
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