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Investment in telecommunications infrastructure, growth and employment – recent research

Reinhard Wieck and Miguel Vidal

International Journal of Management and Network Economics, 2011, vol. 2, issue 2, 135-149

Abstract: Telecommunications investment has been identified as having a strong potential to spur economic growth and create employment. Investments in telecommunications infrastructure could not only provide a short-term boost to the economy, but also lay the groundwork for long-term improved growth and employment perspectives. Indeed, research findings indicate telecom investment has an impact far beyond the scope of the industry itself, promoting growth in adjacent industries and creating new industries. This paper outlines the most important studies and their key findings. It covers ICT productivity studies, econometric studies analysing the relationship between broadband infrastructure and economic development, and 'forward looking' studies estimating the multiplier effects of telecom investments. Most evidence indicates a strong and robust positive relationship between telecom investment and both, economic growth and employment. These results confirm investments in digital infrastructure may significantly contribute to improve long-term growth prospects.

Keywords: telecommunications infrastructure; high speed internet; economic growth; employment; ICT productivity; econometrics; broadband infrastructure; telecom investment. (search for similar items in EconPapers)
Date: 2011
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Handle: RePEc:ids:ijmnec:v:2:y:2011:i:2:p:135-149