Telecommunications Infrastructure and Economic Development: A Simultaneous Approach
Abstract
In this paper we investigate how telecommunications infrastructure affects economic growth. We use evidence from 21 OECD countries over a 20-year period to examine the impacts that telecommunications developments may have had. We jointly estimate a micromodel for telecommunication investment with a macro production function. We find evidence of a significant positive causal link, especially when a critical mass of telecommunications infrastructure is present. Interestingly, the critical mass appears to be at a level of telecommunications infrastructure that is near universal service. (JEL O57, O47, L69)
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The matching approach overcomes the potential problem in fixed-effects models with misspecified temporal lag structures arising from the assumption that independent variables are serially uncorrelated.
“This approach overcomes the potential problem in fixed-effects models with (misspecified) temporal lag structures arising from the assumption that the independent variables are serially uncorrelated.”
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- Authors
- Röller, L.-H., & Waverman, L.
- Affiliations
- INSEAD (FR)
- University of Toronto (CA)
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2001-09-01
- Volume
- 91
- Issue
- 4
- Pages
- 909-923
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W3123689642
- Cited by
- 1,815
- References
- 20
- Citations by year
- 2026: 86 · 2025: 80 · 2024: 85 · 2023: 79 · 2022: 128 · 2021: 110 · 2020: 84 · 2019: 91 · 2018: 77 · 2017: 109 · 2016: 77 · 2015: 72 · 2014: 84 · 2013: 84 · 2012: 102
- FWCI
- 95.84
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Economic Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Physical Sciences › Engineering › Media Technology › ICT Impact and Policies
- Physical Sciences › Computer Science › Information Systems › Economic Growth and Development
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policy and Economic Growth
- Keywords
- telecommunications infrastructure, economic growth, critical mass, universal service, OECD countries, simultaneous equations model
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
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