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Low Latency Internet and Economic Growth: A Simultaneous Approach

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  • Jochen Lüdering

    () (University of Giessen)

Abstract

Given the quality of the available data on Internet access across several countries, it is necessary to evaluate alternative measures to assess the effect of Internet access on economic outcomes. The research at hand builds up on an earlier paper, which introduced a novel measure of Internet quality. A logical consequence has been to introduce the new indicator (average latency for a country) into established models of economic growth. The data used in this analysis spans the period from 2008 to 2014 and covers 155 countries. The findings largely confirm previous results, that Internet access is beneficial to economic growth and emphasize the appropriateness of technical measures of Internet quality for economic analysis. Apart from providing insight into the quality dimension these measures do not rely on survey data, but can be obtained directly requiring only a low level of investment, making the data collection process viable even for smaller institutions.

Suggested Citation

  • Jochen Lüdering, 2016. "Low Latency Internet and Economic Growth: A Simultaneous Approach," MAGKS Papers on Economics 201634, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:201634
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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2016/34-2016_luedering.pdf
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    References listed on IDEAS

    as
    1. Sridhar, Kala Seetharan & Sridhar, Varadharajan, 2007. "Telecommunications Infrastructure And Economic Growth: Evidence From Developing Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 37-56.
    2. Berlemann, Michael & Wesselhöft, Jan-Erik, 2012. "Estimating Aggregate Capital Stocks Using the Perpetual Inventory Method – New Empirical Evidence for 103 Countries –," Working Paper 125/2012, Helmut Schmidt University, Hamburg.
    3. Ibrahim Kholilul Rohman & Erik Bohlin, 2012. "Does broadband speed really matter as a driver of economic growth? Investigating OECD countries," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(4), pages 336-356.
    4. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
    5. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Economic Growth; Simultaneous Equations; Internet; Latency;

    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

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