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ICT and transport infrastructure development: an empirical analysis of complementarity

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  • Kyoung Y. Na
  • Dong H. Kim
  • Byoung G. Park
  • Sang W. Yoon
  • Chang-Ho Yoon

Abstract

This paper provides an empirical framework to assess the nonlinear complementary linkage effects that arise from the interaction between motorway capital and information and communications technology (ICT) capital in developed economies. Using panel data from the Organisation for Economic Co-operation and Development (OECD) member countries and controlling for endogeneity, the paper finds that there exists a critical mass for ICT capital such that if the capital grows beyond the critical mass, the marginal contribution of motorway capital to productivity growth increases as the motorway is extended. This empirical result explains variations in the productivity contributions of transport infrastructure across countries that differ in their ICT infrastructure and has implications for setting the investment priorities of key components of infrastructure.

Suggested Citation

  • Kyoung Y. Na & Dong H. Kim & Byoung G. Park & Sang W. Yoon & Chang-Ho Yoon, 2020. "ICT and transport infrastructure development: an empirical analysis of complementarity," Applied Economics, Taylor & Francis Journals, vol. 52(2), pages 195-211, January.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:2:p:195-211
    DOI: 10.1080/00036846.2019.1640860
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    Cited by:

    1. Li, Yutao & Zhang, Jinning & Lyu, Yanwei, 2023. "Does telecommunications infrastructure promote entrepreneurship in developing countries? Evidence from a quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 106-119.

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