IDEAS home Printed from
   My bibliography  Save this article

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

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Carole Maignan & Dino Pinelli & Fondazione Eni Enrico Mattei & Gianmarco I.P. Ottaviano, 2003. "ICT, Clusters and Regional Cohesion: A Summary of Theoretical and Empirical Research," Working Papers 2003.58, Fondazione Eni Enrico Mattei.
    2. Lipsey, Richard G. & Carlaw, Kenneth I. & Bekar, Clifford T., 2005. "Economic Transformations: General Purpose Technologies and Long-Term Economic Growth," OUP Catalogue, Oxford University Press, number 9780199290895.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Henderson, Dylan & Roche, Neil, 2018. "From consensus to conflict in the regional policy mix for broadband deployment: examining the role of informal coordination," 29th European Regional ITS Conference, Trento 2018 184944, International Telecommunications Society (ITS).
    2. 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.
    3. 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.
    4. 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.
    5. repec:eee:jotrge:v:34:y:2014:i:c:p:142-150 is not listed on IDEAS
    6. Rudra P. Pradhan & Samadhan Bele & Shashikant Pandey, 2013. "Internet-growth nexus: evidence from cross-country panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 20(16), pages 1511-1515, November.
    7. 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.
    8. repec:eee:jotrge:v:37:y:2014:i:c:p:112-120 is not listed on IDEAS
    9. 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).
    10. repec:eee:jotrge:v:64:y:2017:i:c:p:174-183 is not listed on IDEAS
    11. repec:eee:jotrge:v:30:y:2013:i:c:p:26-36 is not listed on IDEAS

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:specan:v:7:y:2012:i:3:p:319-337. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.