A Spatial and Economic Analysis for Telecommunications: Evidence from the European Union

Christos Agiakloglou and Sotiris Karkalakos

Journal of Applied Economics, 2009, vol. 12, issue 1, 11-32

Abstract: This paper evaluates the role of a number of determinants of telecommunication services in the European Union. We use a logistic model with spatial covariates to estimate the demand function for telecommunications in the Union. Our results show that different types of interconnections generate diverse estimates for country specific demand. The impact on telecommunications from countries with spatial, economic or social similarities differs based on those characteristics. Omitted variable bias from not modeling spatial interdependence is limited in models under spatial connectivity criteria. This satisfies the statistical inference drawn by previous empirical studies regarding determinants of telecommunications.

Date: 2009
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DOI: 10.1016/S1514-0326(09)60003-9

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