What Drives Investment in Telecommunications Markets? Evidence from OECD Countries

Ulrich Heimeshoff ()

Review of Economics, 2013, vol. 64, issue 1, 7-28

Abstract: Recent studies provide clear evidence that the quality of telecommunications infrastructure has strong impacts on economic growth. Especially in Germany there is a controversial debate how to stimulate telecommunications investment to foster the introduction of Next Generation Networks. To find appropriate policies to enhance infrastructure investment one has to get a thorough understanding of the determinants of infrastructure investment. Using a panel consisting of 30 OECD countries for the period 1990 to 2011 and taking account of possible non-stationarities in aggregate data, we investigate the main drivers of telecommunications investment on an aggregate level applying dynamic panel data methods. Our main finding is an inverted U-shaped relationship between per capita telecommunications investment and competition.

Keywords: next generation networks; telecommunications investment; regulation; competition; next generation networks; telecommunications investment; regulation; competition (search for similar items in EconPapers)
Date: 2013
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DOI: 10.1515/roe-2013-0102

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