Investigation of Telecommunication Infrastructures-Industrialisation-Growth Nexus: Evidence from Disaggregated Panel Data Analysis

Charles S. Saba
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Charles S. Saba: School of Economics, College of Business and Economics, University of Johannesburg, South Africa

Economia Internazionale / International Economics, 2023, vol. 76, issue 2, 209-264

Abstract: This study examines the telecommunication infrastructures-industrialisation-economic growth nexus in developing countries over the period 2000-2018. A panel data comprising of 99 developing countries were collected and divided into three sub-regions: Latin American & Caribbean (LAMC), Middle East & North Africa (MENA) and Sub-Saharan Africa (SSA). For the analysis, the newly developed panel VAR in generalized method of moment (GMM) estimation approach was applied. Our findings suggest a long-run equilibrium relationship between the three variables. At the same time, strong evidence of two-way causality among the three variables in the entire sample and regions was reported. The panel VAR results suggest that: (i) telecommunication infrastructures have a negative and positive impact on industrialisation and growth, respectively; (ii) industrialisation has a negative impact on growth which imply the inability of the former to drive the latter across the regions. Thus, there is a need to promote realistic policies that will enhance telecommunications infrastructure, levels of industrialisation and economic growth concurrently in the developing countries/regions. Analisi del legame tra infrastrutture di telecomunicazione, industrializzazione e crescita: evidenze da un’analisi di dati panel disaggregati Questo studio esamina il legame tra infrastrutture di telecomunicazione, industrializzazione e crescita nei paesi in via di sviluppo nel periodo 2000-2018. Sono stati raccolti dati panel relativi a 99 paesi suddivisi in tre sottogruppi: America Latina e Caraibi, Medio Oriente e Nord Africa e Africa Sub-sahariana. In questa analisi è stato applicato il metodo generalizzato dei momenti con tecnica panel VAR recentemente sviluppato. I nostri risultati suggeriscono una relazione di equilibrio di lungo periodo fra le tre variabili e causalità biunivoca fra le tre variabili in tutto il campione. I risultati panel VAR suggeriscono che: (i) le infrastrutture di telecomunicazione hanno un impatto negativo sull’industrializzazione e positivo sulla crescita; (ii) l’industrializzazione ha un impatto negativo sulla crescita il che implica l’inabilità della stessa a guidare la crescita nelle regioni. Pertanto, c’è necessità di promuovere politiche realistiche in grado di potenziare contemporaneamente le infrastrutture di telecomunicazione, i livelli di industrializzazione e la crescita economica nei paesi/regioni in via di sviluppo.

Keywords: Regional Groupings; Panel VAR-Granger Causality; Telecommunication Infrastructures; Industrialisation; Economic Growth (search for similar items in EconPapers)
JEL-codes: C33 O14 O30 O47 O55 (search for similar items in EconPapers)
Date: 2023
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