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Geographic and Network Neighbors: Spillover Effects of Telecommunications Infrastructure


  • Serdar Yilmaz
  • Kingley E. Haynes
  • Mustafa Dinc


This paper tests for spatial spillover effects of state-level telecommunications infrastructure investment on state output, using panel data for 48 U.S. states from 1970 through 1997. As information and communication technologies support more industrial locational freedom, states may use telecommunications infrastructure investment as a competitive tool for attracting factors of production. In a production-function framework, this effect would manifest itself as a negative output spillover effect from telecommunications infrastructure investment. Findings indicate that a state benefits from its own telecommunications infrastructure, but telecommunications investment by other states has a negative impact on its output growth path, and proximity amplifies this negative spillover effect. Copyright 2002 Blackwell Publishers Inc.

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  • Serdar Yilmaz & Kingley E. Haynes & Mustafa Dinc, 2002. "Geographic and Network Neighbors: Spillover Effects of Telecommunications Infrastructure," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 339-360.
  • Handle: RePEc:bla:jregsc:v:42:y:2002:i:2:p:339-360

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    References listed on IDEAS

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    Cited by:

    1. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Kauf, Benedikt & Niebel, Thomas, 2016. "The economic impacts of telecommunications networks and broadband internet: A survey," ZEW Discussion Papers 16-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Edoardo Otranto & Massimo Mucciardi & Pietro Bertuccelli, 2016. "Spatial effects in dynamic conditional correlations," Journal of Applied Statistics, Taylor & Francis Journals, vol. 43(4), pages 604-626, March.
    3. Veneta Andonova & Luis Díaz-Serrano, 2006. "Political institutions and the development of telecomunications," Working Papers CREAP2006-10, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2006.
    4. Massimiliano Agovino & Antonio Garofalo, 2013. "Dipendenza spaziale contemporanea e non contemporanea nei tassi di disoccupazione: un tentativo di analisi empirica dei dati provinciali italiani," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2013(3), pages 45-82.
    5. Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society.
    6. Jitendra Parajuli & Kingsley E. Haynes, 2015. "Broadband Internet and new firm formation: a US perspective," Chapters,in: Innovation and Entrepreneurship in the Global Economy, chapter 9, pages 210-236 Edward Elgar Publishing.
    7. Georges Vivien Houngbonon & Julienne Liang, 2017. "Broadband Internet and Income Inequality," Working Papers hal-01653815, HAL.
    8. Piyapong Jiwattanakulpaisarn & Robert B. Noland & Daniel J. Graham, 2012. "Marginal Productivity of Expanding Highway Capacity," Journal of Transport Economics and Policy, University of Bath, vol. 46(3), pages 333-347, September.
    9. Díaz, Luis & Andonova, Veneta Stefanova, 2007. "Political institutions and the development of telecommunications," Working Papers 2072/4176, Universitat Rovira i Virgili, Department of Economics.

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