The telecommunications industry and economic growth: How the market structure matters

Vahagn Jerbashian

Economic Modelling, 2015, vol. 51, issue C, 515-523

Abstract: This paper presents an endogenous growth model where the telecommunications industry is the engine of growth. In such a framework, it analyzes how the market structure of the telecommunications industry can matter for its contribution to long-run growth. It shows that policies which increase the number of firms and/or toughen competition imply higher innovative effort in the telecommunications industry and strengthen its contribution. Modeling entry into the telecommunications industry, this paper also shows that the entry either stops after a number of firms have entered or continues permanently. In the long-run, it is socially optimal to have permanent entry. This can necessitate subsidies to entry into the telecommunications industry.

Keywords: Telecommunications industry; Market structure; Economic growth (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: The Telecommunications Industry and Economic Growth: How the Market Structure Matters (2011)
Working Paper: The Telecommunications Industry and Economic Growth: How the Market Structure Matters (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:51:y:2015:i:c:p:515-523

DOI: 10.1016/j.econmod.2015.09.004

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