Telecommunications infrastructure and usage and the FDI–growth nexus: evidence from Asian-21 countries

Rudra P. Pradhan, Mak Arvin, Mahendhiran Nair, Jay Mittal and Neville R. Norman

Information Technology for Development, 2017, vol. 23, issue 2, 235-260

Abstract: This paper examines causal relationships between telecommunications infrastructure and usage (TEL), foreign direct investment (FDI), and economic growth in the Asian-21 countries for the period 1965–2012. TEL is defined in terms of the prevalence of telephone main lines, mobile phones, internet servers and users, as well as the extent of fixed broadband. These measures are considered both individually and collectively in the form of a composite index of TEL. We report results on long-run relationships between TEL, FDI, and economic growth. We also use a panel vector auto-regression model to reveal the nature of Granger causality among the three variables. Results from these causal relationships provide important policy implications to the Asian-21 countries.

Date: 2017
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/02681102.2016.1217822

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