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Broadband penetration and economic growth nexus: evidence from cross-country panel data

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  • B. Mak Arvin
  • Rudra P. Pradhan

Abstract

This article investigates whether there are Granger causal relationships between broadband penetration, degree of urbanization, foreign direct investment and economic growth using a panel data set covering the G-20 countries for the period 1998-2011. Using our multivariate framework, we first find that all of the variables are cointegrated. Our findings further reveal a network of causal connections between the variables including short-run bidirectional causality between broadband penetration and economic growth among the more developed countries within the G-20. On the other hand, for the developing countries within the G-20, there is evidence of unidirectional causality from economic growth to broadband penetration.

Suggested Citation

  • B. Mak Arvin & Rudra P. Pradhan, 2014. "Broadband penetration and economic growth nexus: evidence from cross-country panel data," Applied Economics, Taylor & Francis Journals, vol. 46(35), pages 4360-4369, December.
  • Handle: RePEc:taf:applec:v:46:y:2014:i:35:p:4360-4369
    DOI: 10.1080/00036846.2014.957444
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    1. Abdur Chowdhury & George Mavrotas, 2005. "FDI and Growth: a Causal Relationship," WIDER Working Paper Series RP2005-25, World Institute for Development Economic Research (UNU-WIDER).
    2. Suzanne McCoskey & Chihwa Kao, 1998. "A Panel Data Investigation of the Relationship Between Urbanization and Growth," Urban/Regional 9805004, University Library of Munich, Germany.
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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 - Leibniz Centre for European Economic Research.
    2. Candelaria, José Alberto, 2015. "A panel data analysis of temporary and permanent effects of fixed broadband penetration over economic growth," 2015 Regional ITS Conference, Los Angeles 2015 146312, International Telecommunications Society (ITS).
    3. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    4. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    5. Bertschek Irene & Briglauer Wolfgang & Hüschelrath Kai & Kauf Benedikt & Niebel Thomas, 2015. "The Economic Impacts of Broadband Internet: A Survey," Review of Network Economics, De Gruyter, vol. 14(4), pages 201-227, December.
    6. Edquist, Harald & Goodridge, Peter & Haskel, Jonathan & Li, Xuan & Lindquist, Edward, 2018. "How important are mobile broadband networks for the global economic development?," Information Economics and Policy, Elsevier, vol. 45(C), pages 16-29.
    7. Katz, Raúl & Jung, Juan & Callorda, Fernando, 2020. "Can digitization mitigate the economic damage of a pandemic? Evidence from SARS," Telecommunications Policy, Elsevier, vol. 44(10).
    8. Jaume Benseny & Juuso Toyli & Heikki Hammainen & Andr'es Arcia-Moret, 2019. "The mitigating role of regulation on the concentric patterns of broadband diffusion. The case of Finland," Papers 1905.03002, arXiv.org, revised Oct 2020.
    9. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries," Technology in Society, Elsevier, vol. 42(C), pages 135-149.
    10. Matthias Firgo & Peter Mayerhofer & Michael Peneder & Philipp Piribauer & Peter Reschenhofer, 2018. "Beschäftigungseffekte der Digitalisierung in den Bundesländern sowie in Stadt und Land," WIFO Studies, WIFO, number 61633.
    11. Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & Sara E. Bennett & John H. Hall, 2019. "The information revolution, innovation diffusion and economic growth: an examination of causal links in European countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1529-1563, May.
    12. Rudra P. Pradhan & Mak B. Arvin & Sahar Bahmani & Sara E. Bennett, 2017. "Broadband penetration, financial development, and economic growth nexus: evidence from the Arab League countries," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 10(2), pages 151-171, May.
    13. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E. & Bahmani, Sahar, 2019. "Short-term and long-term dynamics of venture capital and economic growth in a digital economy: A study of European countries," Technology in Society, Elsevier, vol. 57(C), pages 125-134.
    14. Bahia, Kalvin & Castells, Pau & Pedrós, Xavier, 2019. "The impact of mobile technology on economic growth: global insights from 2000-2017 developments," 30th European Regional ITS Conference, Helsinki 2019 205164, International Telecommunications Society (ITS).
    15. Appiah-Otoo, Isaac & Song, Na, 2021. "The impact of ICT on economic growth-Comparing rich and poor countries," Telecommunications Policy, Elsevier, vol. 45(2).
    16. Pradhan, Rudra P. & Arvin, Mak B. & Bahmani, Sahar & Bennett, Sara E., 2017. "The innovation- growth link in OECD countries: Could other macroeconomic variables matter?," Technology in Society, Elsevier, vol. 51(C), pages 113-123.
    17. Rudra P. Pradhan, Mak B. Arvin, & Mahendhiran Nair, Jay Mittal, & Neville R. Norman, 2017. "Telecommunications infrastructure and usage and the FDI–growth nexus: evidence from Asian-21 countries "Abstract: This paper examines causal relationships between telecommunications infrastructur," Department of Economics - Working Papers Series 2032, The University of Melbourne.
    18. Rudra P. Pradhan & Mak B. Arvin & Neville R. Norman & Sara E. Bennett, 2016. "Financial depth, internet penetration rates and economic growth: country-panel evidence," Applied Economics, Taylor & Francis Journals, vol. 48(4), pages 331-343, January.
    19. Owusu-Agyei, Samuel & Okafor, Godwin & Chijoke-Mgbame, Aruoriwo Marian & Ohalehi, Paschal & Hasan, Fakhrul, 2020. "Internet adoption and financial development in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    20. Tanja Broz & Goran Buturac & Miloš Parežanin, 2020. "Digital transformation and economic cooperation: The case of Western Balkan countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 697-722.

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