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Examining the relationship of communication service utilisation and productivity of labour in the developing country: A case study of Thailand

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  • Keesookpuna, Chutipong
  • Mitomob, Hitoshi
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    Abstract

    It is widely acknowledged that there is a relationship between the use of ICT and economic growth. A number of works of literature point out such fact in the developed country. This study, however, attempts to examine the relationship of the use of ICT and labour productivity, which is one of the factors indicating the economic growth, in the developing country. Thailand is selected for the investigation with the country's data in the period of 1999 - 2010. The ICT is represented by communications consumption and investment throughout the paper. The author presumably proposes a framework in order to verify the relationship in an intuitive way. The quantitative analyses of OLS estimation and the bivariate autoregressive model, or the Granger-causality test, support the validity of the framework and clearly point out the one-way causal relationship flowing from the communications consumption to labour productivity; the communications investment to labour productivity, and the communications consumption to communications investment. --

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    Bibliographic Info

    Paper provided by International Telecommunications Society (ITS) in its series 8th Asia-Pacific Regional ITS Conference, Taipei 2011: Convergence in the Digital Age with number 52329.

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    Date of creation: 2011
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    Handle: RePEc:zbw:itsp11:52329

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    Web page: http://www.its2011taiwan.com/

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    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Diego Martínez & Jesús Rodríguez & José L. Torres, 2008. "ICT-specific technological change and productivity growth in the US 1980-2004," Working Papers 2008-4, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
    3. Greenwood, J. & Hercowitz, Z. & Krusell, P., 1996. "Long-Run Implications of Investment-Specific Technological Change," RCER Working Papers 420, University of Rochester - Center for Economic Research (RCER).
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    7. Koutroumpis, Pantelis, 2009. "The economic impact of broadband on growth: A simultaneous approach," Telecommunications Policy, Elsevier, vol. 33(9), pages 471-485, October.
    8. Jong-Il Kim & Lawrence J. Lau, 1996. "The sources of Asian Pacific economic growth," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 448-54, April.
    9. 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, vol. 11(3), pages 243-269, September.
    10. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
    11. Hashmat Khan & Marjorie Santos, 2002. "Contribution of ICT Use to Output and Labour-Productivity Growth in Canada," Working Papers 02-7, Bank of Canada.
    12. Sridhar, Kala Seetharam & Sridhar, Varadharajan, 2004. "Telecommunications infrastructure and economic growth: Evidence from developing countries," Working Papers 04/14, National Institute of Public Finance and Policy.
    13. Madden, Gary G & Savage, Scott J, 2000. "R&D spillovers, information technology and telecommunications, and productivity in Asia and the OECD," MPRA Paper 11159, University Library of Munich, Germany.
    14. Lam, Pun-Lee & Shiu, Alice, 2010. "Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world," Telecommunications Policy, Elsevier, vol. 34(4), pages 185-199, May.
    15. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, vol. 4(4), pages 278-286, December.
    16. Sridhar, Kala Seetharan & Sridhar, Varadharajan, 2007. "Telecommunications Infrastructure And Economic Growth: Evidence From Developing Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 37-56.
    17. 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, vol. 15(6), pages 529-535, December.
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