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Telecommunications and Growth by Phillip Stephenson

Telecommunications and Growth

by Phillip Stephenson
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Book cover type: Paperback
  • ISBN13: 9783639061413
  • Binding: Paperback
  • Subject: N/A
  • Publisher: VDM Verlag
  • Publisher Imprint: VDM Verlag
  • Publication Date:
  • Pages: 80
  • Original Price: GBP 40.67
  • Language: English
  • Edition: N/A
  • Item Weight: 118 grams
  • BISAC Subject(s): General

Telecommunications infrastructure is recognized as a catalyst for economic growth. The literature has identified how infrastructure con-tributes to growth, ways that telecommunications specifically contri-butes, and empirically confirmed a significant, positive bi-directional relationship between telecommunications infrastructure and growth. More recently, the technological innovations in telecommunications in the 90s have sparked a debate about whether these technologies have created a "digital divide." This work reviews this underlying theory and the debates surrounding this subject. Data for this analysis include 79 countries for the years 1981-2000. The model is regressed using ordinary least squares, a panel-data method, and finally it is in-strumented to attempt to control for endogeneity. The instruments utilized in this investigation prove to be ineffective. The results of the empirical work confirm that there is a strong relationship between telecommunications and growth; that the technological revolution of the 1990s dramatically strengthened this relationship; and that these benefits are biased towards more developed countries, confirming the existence of a digital divide.

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