Mobile Telecommunications Service and Economic Growth: Evidence from China

39 Pages Posted: 31 Mar 2015

See all articles by Michael R. Ward

Michael R. Ward

University of Texas at Arlington - College of Business Administration - Department of Economics; ZEW, Mannheim

Date Written: June 1, 2014

Abstract

Many telecommunications policy efforts are aimed at increasing consumer subscribership and usage. Because of the positive externalities likely to emanate from better communications flows, these goals are likely to generate social benefits beyond the private benefits to the consumer. We provide evidence on one possible social benefit in the Chinese experience -- increased economic growth stemming from greater usage of the mobile telecommunications network.

We contribute to the role of telecommunications service on economic growth in three ways. We separately examine fixed-line and mobile telephone subscription levels. We compare results across periods and regions that differ by the level of development. In addition, 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 as the provincial economy develops more.

Keywords: Growth, Mobile Phone, China

JEL Classification: O04, L96

Suggested Citation

Ward, Michael Robert, Mobile Telecommunications Service and Economic Growth: Evidence from China (June 1, 2014). TPRC 43: The 43rd Research Conference on Communication, Information and Internet Policy Paper. Available at SSRN: https://ssrn.com/abstract=2587834 or http://dx.doi.org/10.2139/ssrn.2587834

Michael Robert Ward (Contact Author)

University of Texas at Arlington - College of Business Administration - Department of Economics ( email )

330 Business Building
Box 19479
Arlington, TX 76019
United States
817-272-3090 (Phone)
817-272-3145 (Fax)

ZEW, Mannheim ( email )

D-68034 Mannheim
Germany

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