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We contribute to the role of telecommunications infrastructure on economic growth in three ways. We separately examine fixed-line and mobile telephone subscription levels. We compare an early build out period to a later more mature industry phase. And we develop a method designed to address endogeneity of telecommunications with respect to growth. We find that mobile services contribute much more to growth but that the effect diminishes over time as the markets for these services become more mature.
In this study, we investigate empirically the relationship between telephone penetration and economic growth, using data for developing countries. Using 3SLS, we estimate a system of equations that endogenizes economic growth and telecom penetration. We find that the traditional economic factors explain demand for mainline and mobile phones, even in developing countries. We find positive impacts of mobile and landline phones on national output, when we control for the effects of capital and labor. We discuss the associated policy implications related to improvement of telecom penetration in developing countries.
Strategies linking the dynamic and changing world of telecommunication to local desires for economic growth are at the heart of this important book. In the age of information, grass roots political leaders have discovered telecommunications as they seek to boost local employment and community well-being. Taking the cases of Richardson, Texas, a Dallas suburb that has attracted over 50,000 high-tech jobs, city-state Singapore, which has successfully upgraded its telecommunications infrastructure to lure information-intensive companies, Atlanta, using the 1996 Olympics to advance its information-technology base, and others, the authors critically examine the successes and failures of each. Their conclusions will be invaluable to planners, politicians, and scholars who want to know whether and how advanced telecommunications infrastructure leads to accelerated economic development.
This publication identifies the role of digital infrastructure in achieving the Sustainable Development Goals (SDGs)--including education, employment, agricultural sustainability, food security, and spatial inequality--in 12 countries in Latin America and the Caribbean. It identifies a gap between the outcomes achieved for each SDG in the countries studied and those achieved in OECD countries. Moreover, the region still has a long way to go to achieve the SDG targets set in the 2030 Agenda for Sustainable Development. The authors explain how investment in digital infrastructure can help close the gaps between the region and these two benchmarks (OECD countries and SDG targets). They also quantify the investment in telecom in the region between 2008 and 2017 and estimate what amount is still needed to help close these gaps.
In this paper we investigate how telecommunications infrasture affects economic growth. This issue is important and has recieved considerable attention in the popular press concentrating the creation of the 'information superhighway' and its potential impacts on the economy. We use evidence from 21 OECD countries over the past twenty years to examine the impacts that telecommunications developments may have had. We estimate a structural model which endogenzie telecommunication investment by specifying a micro-model is then jointly estimated with the macro-growth equation. After controlling for country-specific fixed effects, we find evidence of a positive casual link, provided that a critical mass of telecommunications infrasture is present.
Telecommunications are increasingly recognized as a key component in the infrastructure of economic development. For many years, there were state-owned monopolies in the telecommunications sector. In transition economies, they were characterized by especially poor performance and high access deficits, as telecommunications were considered to be a non-profit-oriented production process intended to support the socio-economic superstructures. As a result, the starting point for the reform processes in transition countries was quite poor performed public monopolies, functioned under completely different circumstances as the peers in the market economies. The main question of this book is what the strategies for the successful future development of the telecommunications sector in transition countries are. The special focus is on Russia, the largest of the transition countries.
This paper investigates the impact of telecommunications infrastructure in Sub-Saharan Africa. We use the World Development Indicators database and apply the instrumental variable-generalized method of moments to a panel of 47 countries over the period 1993-2012. The results show that the Internet and mobile phones have contributed to economic growth. A one percentage point increase in Internet and mobile phone usage raises growth by 0.12 and 0.03 percentage points, respectively. Overall, the results suggest that the development of telecommunications infrastructure fosters economic growth in Sub-Saharan Africa.With much room for potential growth enhancement of telecommunications infrastructure, policies to expand access or reduce cost should be strongly encouraged by African governments, particularly as far as the Internet is concerned.
The IT revolution made some glorious promises to the world's poor: instant access to information and far-flung markets, political empowerment, greater growth, even the possibility that countries could leapfrog entire stages of development. But when none of that happened in a hurry, the hoopla gave way to concern that rather than closing the wealth gap, IT was exacerbating it. Yet for all the international debate and millions of words written about the digital divide, very little systematic empirical research or studies over time have been done to confirm claims and counterclaims and to guide policymakers on how this technology actually affects the development of low-income countries. In this volume, Maximo Torero and Joachim von Braun seek to address this omission with a collection of case studies exploring the relationship between information and communication technologies (ICTs) and development in Bangladesh, China, India, Ghana, Laos, Peru, and East Africa. Their conclusion is that yes, ICTs do have potential to serve and empower the poor by linking them to commercial and social networks, cutting transaction costs, and making the delivery of public goods like education and healthcare more efficient. But these benefits can accrue only when the supporting infrastructure is in place and when ICT policies take into account not only questions of connectivity but also of capability (how to help poor people use the new tools) and of content (what is relevant and in what form). All three c's are critical. Without coherent strategies and the right regulatory policies there is the very real likelihood that scarce resources will be misallocated and that ICT-induced growth will remain elusive. Contributors: Abdul Bayes, Arjun Bedi, Romeo Bertolini, Shyamal K. Chowdhury, Virgilio Galdo, K. Lal, Francis A.S.T. Matambalya, Maja Micevska, Dietrich Mueller-Falcke, Gi-Soon Song, Maximo Torero, Joachim von Braun, Wensheng Wang, and Susanna Wolfe, Gi-Soon Song, Maximo Torero, Joachim von Braun, Wensheng Wang, Susanna Wolf.