The Effects of Broadband Infrastructure on Economic Growth in Developing Countries

Jahangard, Esfandiar; Pourahmadi, Zeinabsadat

doi:10.22099/ijes.2014.2717

Authors

https://doi.org/10.22099/ijes.2014.2717

Abstract

In this paper we investigate the effects of broadband infrastructure providing high speed internet, on economic growth in developing countries. We have used two different broadband measures to classify developing countries into two groups for the period 1999-2008. By using logistic diffusion model and IV approach, a nonlinear diffusion model is specified. Differences in ceiling of diffusion curve of this technology across countries are defined by pre-existing telephone networks. Then, after predicting broadband penetration rates through the diffusion curve and controlling for fixed effects, the effects of introduction and distribution of broadband on economic growth are estimated. The results indicate that these effects are significant and positive.

Keywords

Article Title [Persian]

تاثیر زیرساخت پهنای باند بر رشد اقتصادی کشورهای در حال توسعه

Authors [Persian]

اسفندیار جهانگرد
زینب‌السادات پوراحمدی

Abstract [Persian]

در این مطالعه، به بررسی تاثیر زیرساخت پهنای باند که اینترنت پرسرعت را امکان‌پذیر می‌سازد، بر رشد اقتصادی کشورهای در حال توسعه پرداخته می‌شود. بدین منظور از داده‌های تابلویی دو گروه کشورهای در حال توسعه که بر اساس دو معیار مختلف، جهت معرفی پهنای باند انتخاب شده‌اند برای بررسی این اثر طی دوره زمانی 1999 الی 2008 استفاده شده است. در این راستا، با بکارگیری رهیافت متغیر ابزاری و مدل انتشار لجستیک، درحالیکه تفاوت سقف منحنی انتشار پهنای باند میان کشورها، توسط شبکه‌های تلفن از پیش موجود معین شدند، مدل غیرخطی انتشار این فناوری را تعیین کرده و با بدست آوردن نرخ نفوذ پهنای باند پیش‌بینی شده از طریق این منحنی انتشار، با در نظر گرفتن اثرات ثابت به برآورد تاثیر معرفی و نفوذ پهنای باند بر رشد اقتصادی پرداختیم. نتایج بدست آمده نشان‌دهنده تأثیر مثبت و معنادار این متغیر بر رشد اقتصادی می‌باشد.

Keywords [Persian]

پهنای باند
مدل انتشار
رشد اقتصادی
داده های تابلویی

References

Aghion, P. & Howitt, P. (1997). Endogenous Growth Theory, Cambridge, MA: MIT Press, 1997.

Asaari, A. & Aghaei Khondabi, M. (2008). The impact of Information & Communication Technology on Economic Growth of OPEC Countries, The Economic Research, 8(2), 63-82.

Aschauer, D. A. (1989). Is Public Expenditure Productive? Journal of Monetary Economics, 23(2), 177-200.

Balmaseda, M., (1994). Simultaneity Bias and rate of Return on Public Capital, Working paper, Northwestern University.

Balmaseda, M. (1996). Production Function Estimates of the Rate of Return on Public Infrastructure, paper presented at the CEPR/WZB Conference.

Comin, D., Hobijn, B. & Rovito, E. (2006). Five Facts You Need to Know About Technology Diffusion, NBER Working Paper, No. 11928, Cambridge, MA: National Bureau for Economic Research.

Cronin, F. J., Parker, E. B., Colleran, E. K. & Gold, M. A. (1991). Telecommunications Infrastructure and Economic Growth. An Analysis of Causality, Telecommunications Policy, 15(6), 529-535.

Czernich, N., Falck, O., Kretschmer, T. & Woessmann, L. (2009). Broadband Infrastructure and Economic Growth, CESIFO Working Papers, No. 2861.

Datta, A., & Agarwal, S. (2004). Telecommunications and Economic Growth: A Panel Data Approach, Applied Economics, 36(15), 1649-1654.

Garcia-Mila, T. & McGuire, T. J. (1992). The Contribution of Publicly Provided Inputs to States’ Economies, Regional Science and Urban Economics, 22(2), 229-241.

Greenstein, S. M. & Spiller, P. T. (1995). Modern Telecommunications Infrastructure and Economic Activity: An Empirical Investigation, Industrial and Corporate Change. 4(4), 647-665.

Griliches, Z. (1957). Hybrid Corn: An Exploration in the Economics of Technological Change, Econometrica, 25(4), 501-522.

Hardy, A. (1980). The Role of the Telephone in Economic Development, Telecommunications Policy, 4(4), 278-286.

Holtz-Eakin, D. (1993). State-Specific Estimates of State and Local Government Capital, Regional Science and Urban Economics, 23(2), 185-209.

Holtz-Eakin, D. (1994). Public-Sector Capital and the Productivity Puzzle, The Review of Economics and Statistics, 76(1), 12-21.

Kelejian, H. H. & Robinson, D. P. (1997). Infrastructure Productivity Estimation and its Underlying Econometric Specifications: A Sensitivity Analysis, Papers in Regional Science, 76(1), 115-131.

Komeyjani, A. & Mahmoudzadeh, M. (2008). The Effects of Infrastructure, Application and Spillover of Information & Communication Technology on Economic Growth in Developing Countries, Iranian Journal of Trade Studies, No.49, 31-73.

Koutroumpis, P. (2009). The Economic Impact of Broadband on Growth:A Simultaneous Approach, Telecommunications Policy, 33(9), 471-485.

Leff, N. H. (1984). Externalities, Information Costs and Social Benefit-Cost Analysis for Economic Development: An Example from Telecommunications, Economic Development and Cultural Change, 32(2), 255-276.

Lehr, W., Gillett, S., Osorio, C. & Sirbu, M. (2006). Measuring Broadband's Economic Impact, Broadband Propperties, 24(12), 12-24.

Lucas, R. E., (1988). On the Mechanics of Economic Development, Journal of Monetary Economics, 22(1), 3-42.

Madden, G. & Savage, S. (1998). CEE Telecommunications Investment and Economic Growth, Information Economics and Policy, 10(2), 173-195.

Madden, G. & Savage, S. (2000). Telecommunications and Economic Growth, International Journal of Social Economics, 27(7), 893-906.

Mankiw, G., Romer, D. & Weil, D. (1992). A Contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 107(2), 407-437.

Najarzadeh, R., Aghaei Khoundabi, M. & Talati, M. (2007). The Impact of Information & Communication Technology, ICT, on the Economic Growth of the OIC Countries, Iranian Journal of Trade Studies (IJTS), 11(44), 49-78.

Norton, S. W. (1992). Transaction Costs, Telecommunication, and the Microeconomics of Macroeconomic Growth, Economic Development and Cultural Change, 41(1), 175-196.

Orbicom, (2005). the Digital Divide to Digital Opportunities: Measuring Info State for Development, Published by Claude-Yves Charron.

Pereira, A. M. & Frutos, R. F. (1999). Public Capital Accumulation and Private Sector Performance, Journal of Urban Economics, 46(2), 300-322.

Pohjola, M. (2001). Information Technology and Economic Growth: A Cross-Country Analysis, In M. Pohjola (ed.), Information Technology and Economic Development, Cambridge: Oxford University Press, 242-256.

Pohjola, M. (2002). New Economy in Growth and Development, United Nation University DP., No. 2002/67.

Roller, L. H. & Waverman, L. (2001). Telecommunications Infrastructure and Economic Development: A Simultaneous Approach, The American Economic Review, 91(4), 909-923.

Romer, P. M. (1990). Endogenous Technological Change, Journal of Political Economy, 98(5), S71-S102.

Solow, R. M. (1956). A Contribution to the Theory of Economic Growth, Quarterly Journal of Economics, 70(1), 65-94.

Sridhar, K. S. & Sridhar, V. (2004). Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries, Working papers, No. 04/14, National Institute of Public Finance and Policy.

Iranian Journal of Economic Studies

The Effects of Broadband Infrastructure on Economic Growth in Developing Countries

References

References

Volume 2, Issue 2 - Serial Number 2
December 2013
Pages 1-23

The Effects of Broadband Infrastructure on Economic Growth in Developing Countries

References

References

Volume 2, Issue 2 - Serial Number 2December 2013Pages 1-23

Volume 2, Issue 2 - Serial Number 2
December 2013
Pages 1-23