IDEAS home Printed from https://ideas.repec.org/a/taf/titdxx/v19y2013i1p40-61.html
   My bibliography  Save this article

Investigating factors associated with the spillover effect of investments in telecoms: Do some transition economies pay too much for too little?

Author

Listed:
  • Sergey Valery Samoilenko

Abstract

One of the routes by which investments in information and communication technologies (ICT) could impact a macroeconomic bottom line of economies is by contributing to total factor productivity (TFP), an important component of economic growth. While the more traditional "investments to revenues" resource-intensive path has been well researched, the nature of the indirect "investments to TFP" link remains much less clear. Specifically, it is not well understood what conditions must be present for economies to exhibit the relationship between investments and TFP. In the current study, conducted in the context of 18 transition economies in Europe and the former Soviet Union, we aim to identify some of the factors associated with the presence of the relationship between the subset of investments in ICT, investments in telecoms, and two components of TFP - change in efficiency and change in technology . The results of the analysis of the data set spanning from 1993 to 2002 suggest that while the presence of the link between investments and change in technology was associated with the level of investments, the presence of the relationship between investments and change in efficiency was associated with the quality of a full-time telecom workforce. The consequent analysis of the data set spanning from 2003 to 2008 supports this finding and also provides evidence of the importance of the macroeconomic strategies that balance an increase in the levels of investments with the increase in the levels of efficiency of utilization of investments and the generation of revenues.

Suggested Citation

  • Sergey Valery Samoilenko, 2013. "Investigating factors associated with the spillover effect of investments in telecoms: Do some transition economies pay too much for too little?," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 40-61, January.
    • Handle: RePEc:taf:titdxx:v:19:y:2013:i:1:p:40-61
    DOI: 10.1080/02681102.2012.677710
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02681102.2012.677710
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02681102.2012.677710?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
    2. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    3. Jalava, Jukka & Pohjola, Matti, 2002. "Economic growth in the New Economy: evidence from advanced economies," Information Economics and Policy, Elsevier, vol. 14(2), pages 189-210, June.
    4. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    5. Roghieh Gholami & Sang‐Yong Tom Lee & Almas Heshmati, 2006. "The Causal Relationship Between Information and Communication Technology and Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 29(1), pages 43-62, January.
    6. Lam, Pun-Lee & Lam, Teresa, 2005. "Total factor productivity measures for Hong Kong telephone," Telecommunications Policy, Elsevier, vol. 29(1), pages 53-68, February.
    7. Donald Siegel, 1997. "The Impact Of Computers On Manufacturing Productivity Growth: A Multiple-Indicators, Multiple-Causes Approach," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 68-78, February.
    8. Kallol Bagchi & Peeter Kirs, 2009. "Group Analysis at Regional Levels can be Meaningful in Global IS Research," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 12(4), pages 1-5, October.
    9. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2008. "An exploration of the effects of the interaction between ICT and labor force on economic growth in transition economies," International Journal of Production Economics, Elsevier, vol. 115(2), pages 471-481, October.
    10. Timothy Dunne & Lucia Foster & John Haltiwanger & Kenneth R. Troske, 2004. "Wage and Productivity Dispersion in United States Manufacturing: The Role of Computer Investment," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 397-430, April.
    11. Madden, Gary & Savage, Scott J., 1999. "Telecommunications productivity, catch-up and innovation," Telecommunications Policy, Elsevier, vol. 23(1), pages 65-81, February.
    12. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
    13. Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
    14. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    15. Arcelus, Francisco J. & Arocena, Pablo, 2000. "Convergence and productive efficiency in fourteen OECD countries: A non-parametric frontier approach," International Journal of Production Economics, Elsevier, vol. 66(2), pages 105-117, June.
    16. Narcyz Roztocki & H. Roland Weistroffer, 2008. "Information Technology in Transition Economies," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 11(4), pages 1-8, October.
    17. Sergey Samoilenko & Kweku-Muata Osei-Bryson, 2008. "Strategies for Telecoms to Improve Efficiency in the Production of Revenues: An Empirical Investigation in the Context of Transition Economies," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 11(4), pages 56-75, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ronald Kumar, 2014. "Exploring the role of technology, tourism and financial development: an empirical study of Vietnam," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2881-2898, September.
    2. Juan M. Gallego & Luis H. Gutiérrez & Sang H. Lee, 2015. "A firm-level analysis of ICT adoption in an emerging economy: evidence from the Colombian manufacturing industries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 191-221.
    3. Ronald Kumar & Madhukar Singh, 2014. "Role of health expenditure and ICT in a small island economy: a study of Fiji," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2295-2311, July.
    4. Gunnarsson, Gudmundur & Mellander, Erik & Savvidou, Eleni, 2004. "Human capital is the key to the IT productivity paradox," Working Paper Series 2004:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Kiley, Michael T., 2001. "Computers and growth with frictions: aggregate and disaggregate evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 55(1), pages 171-215, December.
    6. Rajiv Kohli & Sarv Devaraj, 2003. "Measuring Information Technology Payoff: A Meta-Analysis of Structural Variables in Firm-Level Empirical Research," Information Systems Research, INFORMS, vol. 14(2), pages 127-145, June.
    7. Luca Casolaro & Giorgio Gobbi, 2004. "Information technology and productivity changes in the Italian banking industry," Temi di discussione (Economic working papers) 489, Bank of Italy, Economic Research and International Relations Area.
    8. Oliner, Stephen D. & Sichel, Daniel E. & Stiroh, Kevin J., 2008. "Explaining a productive decade," Journal of Policy Modeling, Elsevier, vol. 30(4), pages 633-673.
    9. Dean Parham, 2002. "Productivity Gains: Importance of ICTs," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 9(3), pages 195-210.
    10. Ark, Bart van, 2002. "ICT investments and growth accounts for the European Union," GGDC Research Memorandum 200256, Groningen Growth and Development Centre, University of Groningen.
    11. Lach, Saul & Trajtenberg, Manuel & Shiff, Gil, 2008. "Together but Apart: ICT and Productivity Growth in Israel," CEPR Discussion Papers 6732, C.E.P.R. Discussion Papers.
    12. Ajoy Ketan Sarangi & Rudra Prakash Pradhan, 2020. "ICT infrastructure and economic growth: a critical assessment and some policy implications," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 363-383, December.
    13. Marco Capasso & Nelson Correa, 2010. "ICT and Knowledge Complementarities: A Factor Analysis on Growth," Chapters, in: Mario Cimoli & André A. Hofman & Nanno Mulder (ed.), Innovation and Economic Development, chapter 8, Edward Elgar Publishing.
    14. Maryam Farhadi & Rahmah Ismail & Masood Fooladi, 2012. "Information and Communication Technology Use and Economic Growth," PLOS ONE, Public Library of Science, vol. 7(11), pages 1-7, November.
    15. Sandra E. Black & Lisa M. Lynch, 2004. "What's driving the new economy?: the benefits of workplace innovation," Economic Journal, Royal Economic Society, vol. 114(493), pages 97-116, February.
    16. repec:dgr:rugggd:200256 is not listed on IDEAS
    17. Sawng, Yeong-wha & Kim, Pang-ryong & Park, JiYoung, 2021. "ICT investment and GDP growth: Causality analysis for the case of Korea," Telecommunications Policy, Elsevier, vol. 45(7).
    18. 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.
    19. Liao, Hailin & Wang, Bin & Li, Baibing & Weyman-Jones, Tom, 2016. "ICT as a general-purpose technology: The productivity of ICT in the United States revisited," Information Economics and Policy, Elsevier, vol. 36(C), pages 10-25.
    20. Fredrik Andersson & Matthew Freedman & John Haltiwanger & Julia Lane & Kathryn Shaw, 2009. "Reaching for the Stars: Who Pays for Talent in Innovative Industries?," Economic Journal, Royal Economic Society, vol. 119(538), pages 308-332, June.
    21. Gust, Christopher & Marquez, Jaime, 2004. "International comparisons of productivity growth: the role of information technology and regulatory practices," Labour Economics, Elsevier, vol. 11(1), pages 33-58, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:titdxx:v:19:y:2013:i:1:p:40-61. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/titd20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.