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Telecommunications Dynamics, Output and Employment

Author

Listed:
  • Andre Jungmittag

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

  • Paul J.J. Welfens

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

Abstract

In EU countries, opening up of telecommunications markets and regulations have helped to reduce the price of digital services which is an important quasiinput factor in all firms. Integrating the use of telecommunications in a macroeconomic production function is the analytical starting point for our interdependent analysis of output, use of telecommunications and employment. Based on unit root and co-integration analysis as well as an error correction three-equation model which is estimated simultaneously, we present results both on long run links and short run links between telecommunications, output and employment. Considering various scenarios suggests that a fall in the relative price of telecommunications can generate a cumulated employment increase of 760,000 within seven years in Germany. The institutional setup for regulating telecommunications could be improved in Germany and other EU countries; investor-friendly regulation is required.

Suggested Citation

  • Andre Jungmittag & Paul J.J. Welfens, 2013. "Telecommunications Dynamics, Output and Employment," EIIW Discussion paper disbei195, Universitätsbibliothek Wuppertal, University Library.
    • Handle: RePEc:bwu:eiiwdp:disbei195
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    References listed on IDEAS

    as
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    Cited by:

    1. Paul J.J. Welfens, 2014. "Competition in Telecommunications and Internet Services: Problems with Asymmetric Regulations," EIIW Discussion paper disbei205, Universitätsbibliothek Wuppertal, University Library.

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    More about this item

    Keywords

    Telecommunications; Employment; Growth; Knowledge Society; Regulation;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General

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