Telecommunications Infrastructure & Economic Development: A Simultaneous Approach

Regulation Initiative Working Paper No. 11

Posted: 6 Oct 2002

See all articles by Leonard Waverman

Leonard Waverman

London Business School

Lars-Hendrik Röller

ESMT European School of Management and Technology; Centre for Economic Policy Research (CEPR); WZB Berlin Social Science Center - Competitiveness and Industrial Change

Date Written: August 1997

Abstract

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.

Suggested Citation

Waverman, Leonard and Röller, Lars-Hendrik, Telecommunications Infrastructure & Economic Development: A Simultaneous Approach (August 1997). Regulation Initiative Working Paper No. 11. Available at SSRN: https://ssrn.com/abstract=322780

Leonard Waverman (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Lars-Hendrik Röller

ESMT European School of Management and Technology ( email )

Schlossplatz 1
Berlin, 10178
Germany

HOME PAGE: http://www.esmt.org/eng/faculty-research/lars-hendrik-roeller/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

WZB Berlin Social Science Center - Competitiveness and Industrial Change ( email )

Reichpietschufer 50
10785 Berlin
Germany
+49 30 2549 1440 (Phone)
+49 30 2549 1442 (Fax)

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