Telecommunications and economic development: Econometric analysis of the US experience

Ruby Roy Dholakia and Bari Harlam

Telecommunications Policy, 1994, vol. 18, issue 6, 470-477

Abstract: Investment in the telecommunications infrastructure can be justified because of the positive impact on economic development. Using statistical data for the 50 states of the USA, econometric analysis suggests that the influence of telecommunications is very strong when it is viewed as the only developmental input as well as when it is compared with other inputs such as education, energy and physical infrastructure. The multiple regression analysis provides a comparative perspective on resource inputs which has not been available in past research. The analysis also suggests that it is not a question of simple trade-offs between investment in one input with that of another. Instead, investment has to be made in multiple inputs including education, telecommunications and physical infrastructure.

Date: 1994
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