Journal
APPLIED ECONOMICS
Volume 36, Issue 15, Pages 1649-1654Publisher
ROUTLEDGE TAYLOR & FRANCIS LTD
DOI: 10.1080/0003684042000218552
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Telecommunication investment is increasingly identified as one with a strong potential to improve economic productivity and growth. The objective of this study is to investigate the long run relationship between telecommunications infrastructure and economic growth, using data from 22 OECD countries. A dynamic panel data method is used for estimation, which corrects for omitted variables bias of single equation cross-section regression. The 'fixed-effects' specification accounts for country specific differences in aggregate production functions. The results show a significant and positive correlation between telecommunications infrastructure and growth, after controlling for a number of other factors.
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