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An Empirical Investigation of Telecommunications Investment and Economic Development in Developing Countries

Author

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  • Yoo, Seung-Hoon

    (Hoseo University)

Abstract

Evaluating the sources of economic development is of obvious importance, and numerous attempts have been made to judge the impact of many different factors on economic development. Since some empirical studies have reported that telecommunications investment is one of the important factors in economic development, this paper empirically investigates the impact of telecommunications investment on economic development using a cross-country analysis based on data from 56 developing countries for the years 1970-98. To this end, a further augmented version of the neoclassical Solow growth model is suggested and applied. Subject to the appropriate caveats, the results provide further support for several key conclusions of the former studies - investment in physical capital, population growth, and human capital seem to be quite important in accounting for economic development in developing countries. In addition, more importantly, it is concluded that telecommunications investment significantly contributes to economic development in the developing world.

Suggested Citation

  • Yoo, Seung-Hoon, 2001. "An Empirical Investigation of Telecommunications Investment and Economic Development in Developing Countries," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 5(2), pages 141-164, December.
    • Handle: RePEc:ris:eaerev:0238
    DOI: 10.11644/KIEP.JEAI.2001.5.2.85
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    Cited by:

    1. Vartanov, Sergey, 2020. "Стратегический Подход К Анализу Медиасистемы России [A strategic approach to Russian media system analysis]," MPRA Paper 105224, University Library of Munich, Germany.

    More about this item

    Keywords

    Telecommunications Investment; Economic Development; Cross-country Analysis; Developing Countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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