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Modern Telecommunications Infrastructure and Economic Activity: An Empirical Investigation

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  • Greenstein, Shane M
  • Spiller, Pablo T

Abstract

This study focuses on the impact of telecommunication infrastructure on economic activity in two sectors: flare, insurance and real estate; and manufacturing. Results indicate that modernization of the telephone network is associated with more fire, insurance and real estate activity in the local region, while it is not associated with more manufacturing. Once other determinants of growth are controlled for, a doubling of optic fiber cable leads to at least a 10%, and possibly a much higher, increase in the level of economic activity in fire, insurance and real estate. This result implies that the level of modernization of a telecommunications network has an economically important influence on the amount of high tech white collar activity in a region, while it is less important for manufacturing activity, which typically employs less modern telecommunications services. Copyright 1995 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial & Corporate Change.

Volume (Year): 4 (1995)
Issue (Month): 4 ()
Pages: 647-65

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Handle: RePEc:oup:indcch:v:4:y:1995:i:4:p:647-65

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Cited by:
  1. Madden, Gary G & Savage, Scott J, 1997. "CEE telecommunications investment and economic growth," MPRA Paper 11843, University Library of Munich, Germany, revised 25 Jul 1997.
  2. Alfredo Marvão Pereira & Jorge M. Andraz, 2013. "On the economic effects of public infrastructure investment:A survey of the international evidence," Working Papers 108, Department of Economics, College of William and Mary.
  3. Michelle Connolly & James Prieger, 2009. "Economics at the FCC, 2008–2009: Broadband and Merger Review," Review of Industrial Organization, Springer, vol. 35(4), pages 387-417, December.
  4. Correa, Lisa, 2006. "The economic impact of telecommunications diffusion on UK productivity growth," Information Economics and Policy, Elsevier, vol. 18(4), pages 385-404, November.
  5. Li, Yan, 2011. "The competitive landscape of China’s telecommunications industry: Is there a need for further regulatory reform?," Utilities Policy, Elsevier, vol. 19(3), pages 125-133.
  6. Madden, Gary & Savage, Scott J, 1998. "Sources of Australian Labour Productivity Change 1950-1994," The Economic Record, The Economic Society of Australia, vol. 74(227), pages 362-72, December.
  7. Sang H. Lee & John Levendis & Luis Gutierrez, 2009. "Telecommunications and economic growth: an empirical analysis of sub-saharan Africa," DOCUMENTOS DE TRABAJO 005512, UNIVERSIDAD DEL ROSARIO.
  8. Madden, Gary G & Savage, Scott J, 1999. "Telecommunications productivity, catch-up and innovation," MPRA Paper 11448, University Library of Munich, Germany.
  9. Shane M. Greenstein & Pablo T. Spiller, 1996. "Estimating the Welfare Effects of Digital Infrastructure," NBER Working Papers 5770, National Bureau of Economic Research, Inc.
  10. Röller, Lars-Hendrik & Waverman, Leonard, 2000. "Telecommunications Infrastructure And Economic Development: A Simultaneous Approach," CEPR Discussion Papers 2399, C.E.P.R. Discussion Papers.
  11. Abbas Valadkhani, 2003. "An Empirical Analysis of Australian Labour Productivity," Australian Economic Papers, Wiley Blackwell, vol. 42(3), pages 273-291, 09.
  12. António Madureira & Nico Baken & Harry Bouwman, 2011. "Value of digital information networks: a holonic framework," Netnomics, Springer, vol. 12(1), pages 1-30, April.
  13. Alfredo M. Pereira & Jorge M. Andraz, 2006. "Public Investment in Transportation Infrastructures and Industry Performance in Portugal," Working Papers 45, Department of Economics, College of William and Mary, revised 30 Apr 2007.
  14. Madureira, António & den Hartog, Frank & Bouwman, Harry & Baken, Nico, 2013. "Empirical validation of Metcalfe’s law: How Internet usage patterns have changed over time," Information Economics and Policy, Elsevier, vol. 25(4), pages 246-256.
  15. Valadkhani, Abbas, 2006. "Labour Productivity in Iran," Economics Working Papers wp06-13, School of Economics, University of Wollongong, NSW, Australia.

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