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Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries

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  • Kala Seetharam Sridhar

    ()

  • Varadharajan Sridhar

    ()

Abstract

Simultaneous relationship between telecommunications and the economic growth, using data for developing countries are examined. Using 3SLS, a system of equations that endogenize economic growth and telecom penetration (respectively production function and demand for telecom services), along with supply of telecom investment and growth in telecom penetration are estimated. This system of equations are examined separately for main telephone lines and cell phones. [NIPFP Wp No. 14].

Suggested Citation

  • Kala Seetharam Sridhar & Varadharajan Sridhar, 2009. "Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries," Working Papers id:2247, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2247
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    References listed on IDEAS

    as
    1. De Long, J. Bradford & Summers, Lawrence H., 1993. "How strongly do developing economies benefit from equipment investment?," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 395-415, December.
    2. Wong, Poh-Kam, 2002. "ICT production and diffusion in Asia Digital dividends or digital divide?," Information Economics and Policy, Elsevier, vol. 14(2), pages 167-187, June.
    3. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    4. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, vol. 4(4), pages 278-286, December.
    5. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1993. "Telecommunications infrastructure investment and economic development," Telecommunications Policy, Elsevier, vol. 17(6), pages 415-430, August.
    6. Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models," Econometrica, Econometric Society, vol. 52(3), pages 701-720, May.
    7. Karen Eggleston & Robert Jensen & Richard Zeckhauser, 2002. "Information and Communication Technologies, Markets and Economic Development," Discussion Papers Series, Department of Economics, Tufts University 0203, Department of Economics, Tufts University.
    8. Nirvikar Singh, 2004. "Information Technology as an Engine of Broad-Based Growth in India," Development and Comp Systems 0412012, EconWPA.
    9. Jha, Raghbendra & Majumdar, Sumit K., 1999. "A matter of connections: OECD telecommunications sector productivity and the role of cellular technology diffusion," Information Economics and Policy, Elsevier, vol. 11(3), pages 243-269, September.
    10. Norton, Seth W, 1992. "Transaction Costs, Telecommunications, and the Microeconomics of Macroeconomic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 175-196, October.
    11. Garbade, Kenneth D & Silber, William L, 1978. "Technology, Communication and the Performance of Financial Markets: 1840-1975," Journal of Finance, American Finance Association, vol. 33(3), pages 819-832, June.
    12. Cronin, Francis J. & Parker, Edwin B. & Colleran, Elisabeth K. & Gold, Mark A., 1991. "Telecommunications infrastructure and economic growth : An analysis of causality," Telecommunications Policy, Elsevier, vol. 15(6), pages 529-535, December.
    13. Seetharam Sridhar, Kala & Sridhar, Varadharajan, 2003. "The Effect of Telecommuting on Suburbanization: Empirical Evidence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 33(1).
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    More about this item

    Keywords

    cellular services; output; Infrastructure; Reverse causality; labour; telecommunications; economic growth; developing countries; production function; telephone lines; cell phones; services;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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