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Telecommunications Dynamics, Output and Employment

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Author Info
Andre Jungmittag () (University of Wuppertal)
Paul J.J. Welfens () (University of Wuppertal and IZA Bonn)

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Abstract

In EU countries, opening up of telecommunications markets and regulations have helped to reduce the price of digital services which is an important quasi-input 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 are 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.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2379.

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Length: 20 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2379

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Related research
Keywords: telecommunications; employment; growth; knowledge society; regulation;

Find related papers by JEL classification:
E0 - Macroeconomics and Monetary Economics - - General
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
O0 - Economic Development, Technological Change, and Growth - - General

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lars-Hendrik Röller & Leonard Waverman, 1996. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," CIG Working Papers FS IV 96-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
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  2. Ark, Bart van & Piatkowski, Marcin, 2004. "Productivity, innovation and ICT in old and new Europe," GGDC Research Memorandum 200469, Groningen Growth and Development Centre, University of Groningen. [Downloadable!]
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  3. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
    Other versions:
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