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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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“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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Metadata
- 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
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › ICT Impact and Policies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › 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
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