Economic growth, telecommunications development and productivity growth of the telecommunications sector: Evidence around the world

Pun Lee Lam, Alice Shiu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

104 Citations (Scopus)

Abstract

This paper studies the relationships between economic growth, telecommunications development and productivity growth of the telecommunications sector in different countries and regions of the world. In particular, this study assesses the impact of mobile telecommunications on economic growth and telecommunications productivity. The results indicate that there is a bidirectional relationship between real gross domestic product (GDP) and telecommunications development (as measured by teledensity) for European and high-income countries. However, when the impact of mobile telecommunications development on economic growth is measured separately, the bi-directional relationship is no longer restricted to European and high-income countries. This study also finds that countries in the upper-middle income group have achieved a higher average total factor productivity (TFP) growth than other countries. Countries with competition and privatization in telecommunications have achieved a higher TFP growth than those without competition and privatization. The diffusion of mobile telecommunications services is found to be a significant factor that has improved the TFP growth of the telecommunications sector in Central and Eastern Europe (CEE).
Original languageEnglish
Pages (from-to)185-199
Number of pages15
JournalTelecommunications Policy
Volume34
Issue number4
DOIs
Publication statusPublished - 1 May 2010

Keywords

  • Economic growth
  • Telecommunications
  • Total factor productivity

ASJC Scopus subject areas

  • Electrical and Electronic Engineering
  • Information Systems
  • Human Factors and Ergonomics

Cite this