Journal
TELECOMMUNICATIONS POLICY
Volume 38, Issue 7, Pages 634-649Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.telpol.2014.03.001
Keywords
Telecommunications infrastructure; Economic growth; Macroeconomic variables; Panel VAR; Granger causality
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This paper examines the linkages between the development of telecommunications infrastructure (DTI), economic growth, and four key indicators of operation of a modern economy: gross capital formation, foreign direct investment inflows, urbanization rates, and trade openness. By studying the G-20 countries over the period 1991-2012 and employing a panel vector auto-regressive model for detecting Granger causality, we find a network of long-run causal connections between these variables, including bidirectional causality between DTI and economic growth. (C) 2014 Elsevier Ltd. All rights reserved.
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