Telecommunications Dynamics, Output and Employment
AbstractIn 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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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2379.
Length: 20 pages
Date of creation: Oct 2006
Date of revision:
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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:
- NEP-ALL-2006-10-28 (All new papers)
- NEP-ICT-2006-10-28 (Information & Communication Technologies)
- NEP-MAC-2006-10-28 (Macroeconomics)
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