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The Causal Effect of the Internet Infrastructure on the Economic Development of European City Regions


  • Emmanouil Tranos


This paper examines the direction of causality between the Internet infrastructure (cyber-place), as is reflected in the accumulated international Internet backbone capacity, and the economic development of European city regions. On the basis of previous research which highlights the uneven allocation of this complex network infrastructure, this paper attempts to move the analysis a step forward, and addresses the causality issue by using the Granger causality test for panel data. The latter explores the heterogeneous causal effects of the Internet infrastructure, and results in verifying the well-established argument that ICT infrastructure is a necessary, but not a sufficient, condition for economic development. RÉSUMÉ La présente communication examine l'orientation de la causalité entre l'infrastructure de l'Internet (cyber-place), telle qu'elle est reflétée dans la capacité d’« épine dorsale » d'internationale que représente l'Internet, et le développement économique des agglomérations européennes. Sur la base de recherches précédentes, qui soulignent la répartition irrégulière de cette complexe infrastructure en réseau, la présente communication s'efforce de faire un pas en avant dans cette analyse, en se penchant sur la question de la causalité, et en utilisant le test de causalité de Granger pour les données de panel. Ce dernier cas explore les effets causaux hétérogènes de l'infrastructure de l'Internet, et donne lieu à une vérification de l'argument bien établi d'après lequel l'infrastructure ICT est une condition nécessaire, mais non pas suffisante, pour le développement économique. EXTRACTO Este estudio examina la dirección de la causalidad entre la infraestructura de Internet (ciberespacio), como se refleja en la capacidad troncal, internacional y acumulada de Internet, y el desarrollo económico de las ciudades región europeas. En base a la investigación previa que destaca la distribución no homogénea de esta compleja infraestructura de red, este estudio intenta hacer avanzar el análisis un paso más y trata la cuestión de causalidad utilizando el ensayo de causalidad Granger para datos de panel. Este último explora los efectos causales heterogéneos de la infraestructura de Internet y resulta en la verificación del bien establecido argumento en cuanto a que la infraestructura ICT es una condición necesaria, aunque no suficiente, para el desarrollo económico.

Suggested Citation

  • Emmanouil Tranos, 2012. "The Causal Effect of the Internet Infrastructure on the Economic Development of European City Regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(3), pages 319-337, September.
  • Handle: RePEc:taf:specan:v:7:y:2012:i:3:p:319-337 DOI: 10.1080/17421772.2012.694140

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    References listed on IDEAS

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    Cited by:

    1. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "The long-run impact of Information and Communication Technology on economic output: The case of Australia," Telecommunications Policy, Elsevier, vol. 38(7), pages 623-633.
    2. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "Information technology and its changing roles to economic growth and productivity in Australia," Telecommunications Policy, Elsevier, vol. 38(2), pages 125-135.
    3. André Torre & Frederic Wallet Wallet, 2013. "The role of proximity relations in regional and territorial development processes," ERSA conference papers ersa13p792, European Regional Science Association.
    4. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R. & Bele, Samadhan K., 2014. "Economic growth and the development of telecommunications infrastructure in the G-20 countries: A panel-VAR approach," Telecommunications Policy, Elsevier, vol. 38(7), pages 634-649.
    5. Celbis M.G. & Crombrugghe D.P.I. de, 2014. "Can internet infrastructure help reduce regional disparities? : evidence from Turkey," MERIT Working Papers 078, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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