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The Causal Effect of the Internet Infrastructure on the Economic Development of European City Regions

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  • Emmanouil Tranos

Abstract

This paper examines the direction of causality between the Internet infrastructure (cyber-place), as is reflected in the accumulated international Internet backbone capacity, and the economic development of European city regions. On the basis of previous research which highlights the uneven allocation of this complex network infrastructure, this paper attempts to move the analysis a step forward, and addresses the causality issue by using the Granger causality test for panel data. The latter explores the heterogeneous causal effects of the Internet infrastructure, and results in verifying the well-established argument that ICT infrastructure is a necessary, but not a sufficient, condition for economic development. RÉSUMÉ La présente communication examine l'orientation de la causalité entre l'infrastructure de l'Internet (cyber-place), telle qu'elle est reflétée dans la capacité d’« épine dorsale » d'internationale que représente l'Internet, et le développement économique des agglomérations européennes. Sur la base de recherches précédentes, qui soulignent la répartition irrégulière de cette complexe infrastructure en réseau, la présente communication s'efforce de faire un pas en avant dans cette analyse, en se penchant sur la question de la causalité, et en utilisant le test de causalité de Granger pour les données de panel. Ce dernier cas explore les effets causaux hétérogènes de l'infrastructure de l'Internet, et donne lieu à une vérification de l'argument bien établi d'après lequel l'infrastructure ICT est une condition nécessaire, mais non pas suffisante, pour le développement économique. EXTRACTO Este estudio examina la dirección de la causalidad entre la infraestructura de Internet (ciberespacio), como se refleja en la capacidad troncal, internacional y acumulada de Internet, y el desarrollo económico de las ciudades región europeas. En base a la investigación previa que destaca la distribución no homogénea de esta compleja infraestructura de red, este estudio intenta hacer avanzar el análisis un paso más y trata la cuestión de causalidad utilizando el ensayo de causalidad Granger para datos de panel. Este último explora los efectos causales heterogéneos de la infraestructura de Internet y resulta en la verificación del bien establecido argumento en cuanto a que la infraestructura ICT es una condición necesaria, aunque no suficiente, para el desarrollo económico.

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  • Emmanouil Tranos, 2012. "The Causal Effect of the Internet Infrastructure on the Economic Development of European City Regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(3), pages 319-337, September.
    • Handle: RePEc:taf:specan:v:7:y:2012:i:3:p:319-337
    DOI: 10.1080/17421772.2012.694140
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    1. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R. & Bele, Samadhan K., 2014. "Economic growth and the development of telecommunications infrastructure in the G-20 countries: A panel-VAR approach," Telecommunications Policy, Elsevier, vol. 38(7), pages 634-649.
    2. Ajoy Ketan Sarangi & Rudra Prakash Pradhan, 2020. "ICT infrastructure and economic growth: a critical assessment and some policy implications," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 363-383, December.
    3. Oughton, Edward J. & Comini, Niccolò & Foster, Vivien & Hall, Jim W., 2022. "Policy choices can help keep 4G and 5G universal broadband affordable," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    4. Oughton,Edward J. & Comini,Niccolo & Foster,Vivien & Hall,Jim W., 2021. "Policy Choices Can Help Keep 4G and 5G Universal Broadband Affordable," Policy Research Working Paper Series 9563, The World Bank.
    5. Lordan, Oriol & Sallan, Jose M. & Simo, Pep, 2014. "Study of the topology and robustness of airline route networks from the complex network approach: a survey and research agenda," Journal of Transport Geography, Elsevier, vol. 37(C), pages 112-120.
    6. Thonipara, Anita & Sternberg, Rolf G. & Proeger, Till & Haefner, Lukas, 2020. "Assessing the Digital Divide and its Regional Determinants: Evidence from a Web-Scraping Analysis," ifh Working Papers 25/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2020.
    7. Celbis M.G. & Crombrugghe D.P.I. de, 2014. "Can internet infrastructure help reduce regional disparities? : evidence from Turkey," MERIT Working Papers 2014-078, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Qi, Guanqiu & Shi, Wenming & Lin, Kun-Chin & Yuen, Kum Fai & Xiao, Yi, 2020. "Spatial spillover effects of logistics infrastructure on regional development: Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 96-114.
    9. Henderson, Dylan & Roche, Neil, 2018. "From consensus to conflict in the regional policy mix for broadband deployment: examining the role of informal coordination," 29th European Regional ITS Conference, Trento 2018 184944, International Telecommunications Society (ITS).
    10. Shao, Shuai & Tian, Zhihua & Yang, Lili, 2017. "High speed rail and urban service industry agglomeration: Evidence from China's Yangtze River Delta region," Journal of Transport Geography, Elsevier, vol. 64(C), pages 174-183.
    11. Fang Wang & Ming Yao & Xianhua Huang & Hao Guo & Penghui Zheng & Hongwei Yu, 2022. "The Effects of Investment in Major Construction Projects on Regional Economic Growth Quality: A Difference-In-Differences Analysis Based on PPP Policy," Sustainability, MDPI, vol. 14(11), pages 1-14, June.
    12. Xin Du & Hengming Zhang & Yawen Han, 2022. "How Does New Infrastructure Investment Affect Economic Growth Quality? Empirical Evidence from China," Sustainability, MDPI, vol. 14(6), pages 1-30, March.
    13. Edward J Oughton & Niccol`o Comini & Vivien Foster & Jim W Hall, 2021. "Policy choices can help keep 4G and 5G universal broadband affordable," Papers 2101.07820, arXiv.org, revised Feb 2021.
    14. Liu, Xingjian & Derudder, Ben & García, Cándida Gago, 2013. "Exploring the co-evolution of the geographies of air transport aviation and corporate networks," Journal of Transport Geography, Elsevier, vol. 30(C), pages 26-36.
    15. Willis, George & Tranos, Emmanouil, 2020. "Using ‘Big Data’ to understand the impacts of Uber on taxis in New York City," SocArXiv 25fxs, Center for Open Science.
    16. Li, Mengjie & Du, Weijian, 2021. "Can Internet development improve the energy efficiency of firms: Empirical evidence from China," Energy, Elsevier, vol. 237(C).
    17. Van De Vijver, Elien & Derudder, Ben & Witlox, Frank, 2014. "Exploring causality in trade and air passenger travel relationships: the case of Asia-Pacific, 1980–2010," Journal of Transport Geography, Elsevier, vol. 34(C), pages 142-150.
    18. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "The long-run impact of Information and Communication Technology on economic output: The case of Australia," Telecommunications Policy, Elsevier, vol. 38(7), pages 623-633.
    19. Zachary P Neal, 2018. "The urban metabolism of airline passengers: Scaling and sustainability," Urban Studies, Urban Studies Journal Limited, vol. 55(1), pages 212-225, January.
    20. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "Information technology and its changing roles to economic growth and productivity in Australia," Telecommunications Policy, Elsevier, vol. 38(2), pages 125-135.
    21. André Torre & Frederic Wallet Wallet, 2013. "The role of proximity relations in regional and territorial development processes," ERSA conference papers ersa13p792, European Regional Science Association.
    22. Olena Khlystova & Yelena Kalyuzhnova, 2023. "The impact of the creative industries and digitalization on regional resilience and productive entrepreneurship," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1654-1695, October.
    23. Rudra P. Pradhan & Samadhan Bele & Shashikant Pandey, 2013. "Internet-growth nexus: evidence from cross-country panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 20(16), pages 1511-1515, November.
    24. Yu, Mingchao & Yu, Ran & Tang, Yuxuan & Liu, Zhen, 2020. "Empirical study on the impact of China's metro services on urban transportation energy consumption," Research in Transportation Economics, Elsevier, vol. 80(C).
    25. Anita Thonipara & Rolf Sternberg & Till Proeger & Lukas Haefner, 2023. "Digital divide, craft firms’ websites and urban-rural disparities—empirical evidence from a web-scraping approach [Digital Divide, Websites von Handwerksunternehmen und städtisch-ländliche Disparit," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(1), pages 69-99, April.

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