Broadband penetration and economic growth nexus: evidence from cross-country panel data

Mak Arvin and Rudra P. Pradhan

Applied Economics, 2014, vol. 46, issue 35, 4360-4369

Abstract: This article investigates whether there are Granger causal relationships between broadband penetration, degree of urbanization, foreign direct investment and economic growth using a panel data set covering the G-20 countries for the period 1998-2011. Using our multivariate framework, we first find that all of the variables are cointegrated. Our findings further reveal a network of causal connections between the variables including short-run bidirectional causality between broadband penetration and economic growth among the more developed countries within the G-20. On the other hand, for the developing countries within the G-20, there is evidence of unidirectional causality from economic growth to broadband penetration.

Date: 2014
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DOI: 10.1080/00036846.2014.957444

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