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Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries

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  • Kala Seetharam Sridhar

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  • Varadharajan Sridhar

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    Abstract

    Simultaneous relationship between telecommunications and the economic growth, using data for developing countries are examined. Using 3SLS, a system of equations that endogenize economic growth and telecom penetration (respectively production function and demand for telecom services), along with supply of telecom investment and growth in telecom penetration are estimated. This system of equations are examined separately for main telephone lines and cell phones. [NIPFP Wp No. 14].

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:2247.

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    Date of creation: Oct 2009
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    Handle: RePEc:ess:wpaper:id:2247

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    Keywords: cellular services; output; Infrastructure; Reverse causality; labour; telecommunications; economic growth; developing countries; production function; telephone lines; cell phones; services;

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    1. Karen Eggleston & Robert Jensen & Richard Zeckhauser, 2002. "Information and Communication Technologies, Markets and Economic Development," Discussion Papers Series, Department of Economics, Tufts University, Department of Economics, Tufts University 0203, Department of Economics, Tufts University.
    2. Wong, Poh-Kam, 2002. "ICT production and diffusion in Asia Digital dividends or digital divide?," Information Economics and Policy, Elsevier, Elsevier, vol. 14(2), pages 167-187, June.
    3. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1991. "Telecommunications infrastructure and economic growth : An analysis of causality," Telecommunications Policy, Elsevier, Elsevier, vol. 15(6), pages 529-535, December.
    4. De Long, J. Bradford & Summers, Lawrence H., 1993. "How strongly do developing economies benefit from equipment investment?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 32(3), pages 395-415, December.
    5. Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    6. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, Elsevier, vol. 4(4), pages 278-286, December.
    7. Nirvikar Singh, 2004. "Information Technology as an Engine of Broad-Based Growth in India," Development and Comp Systems, EconWPA 0412012, EconWPA.
    8. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1993. "Telecommunications infrastructure investment and economic development," Telecommunications Policy, Elsevier, Elsevier, vol. 17(6), pages 415-430, August.
    9. Norton, Seth W, 1992. "Transaction Costs, Telecommunications, and the Microeconomics of Macroeconomic Growth," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 41(1), pages 175-96, October.
    10. Jha, Raghbendra & Majumdar, Sumit K., 1999. "A matter of connections: OECD telecommunications sector productivity and the role of cellular technology diffusion," Information Economics and Policy, Elsevier, Elsevier, vol. 11(3), pages 243-269, September.
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    Cited by:
    1. Ejaz Ghani & Arti Grover Goswami & Homi Kharas, 2012. "Service with a Smile," World Bank Other Operational Studies, The World Bank 17068, The World Bank.

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