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Telecommunications Infrastructure and Economic Development: A Simultaneous Approach

Lars-Hendrik Roller and Leonard Waverman

American Economic Review, 2001, vol. 91, issue 4, 909-923

Abstract: In this paper we investigate how telecommunications infrastructure affects economic growth. We use evidence from 21 OECD countries over a 20-year period to examine the impacts that telecommunications developments may have had. We jointly estimate a micromodel for telecommunication investment with a macro production function. We find evidence of a significant positive causal link, especially when a critical mass of telecommunications infrastructure is present. Interestingly, the critical mass appears to be at a level of telecommunications infrastructure that is near universal service.

JEL-codes: O47 L96 O33 H54 (search for similar items in EconPapers)
Date: 2001
Note: DOI: 10.1257/aer.91.4.909
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Working Paper: Telecommunications Infrastructure And Economic Development: A Simultaneous Approach (2000) Downloads
Working Paper: Telecommunications Infrastructure and Economic Development: A Simultaneous Approach (1996) Downloads
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