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Investigation of Telecommunication Infrastructures-Industrialisation-Growth Nexus: Evidence from Disaggregated Panel Data Analysis

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  • Saba, Charles S.

    (School of Economics, College of Business and Economics, University of Johannesburg, South Africa)

Abstract

This study examines the telecommunication infrastructures-industrialisation-economic growth nexus in developing countries over the period 2000-2018. A panel data comprising of 99 developing countries were collected and divided into three sub-regions: Latin American & Caribbean (LAMC), Middle East & North Africa (MENA) and Sub-Saharan Africa (SSA). For the analysis, the newly developed panel VAR in generalized method of moment (GMM) estimation approach was applied. Our findings suggest a long-run equilibrium relationship between the three variables. At the same time, strong evidence of two-way causality among the three variables in the entire sample and regions was reported. The panel VAR results suggest that: (i) telecommunication infrastructures have a negative and positive impact on industrialisation and growth, respectively; (ii) industrialisation has a negative impact on growth which imply the inability of the former to drive the latter across the regions. Thus, there is a need to promote realistic policies that will enhance telecommunications infrastructure, levels of industrialisation and economic growth concurrently in the developing countries/regions. Analisi del legame tra infrastrutture di telecomunicazione, industrializzazione e crescita: evidenze da un’analisi di dati panel disaggregati Questo studio esamina il legame tra infrastrutture di telecomunicazione, industrializzazione e crescita nei paesi in via di sviluppo nel periodo 2000-2018. Sono stati raccolti dati panel relativi a 99 paesi suddivisi in tre sottogruppi: America Latina e Caraibi, Medio Oriente e Nord Africa e Africa Sub-sahariana. In questa analisi è stato applicato il metodo generalizzato dei momenti con tecnica panel VAR recentemente sviluppato. I nostri risultati suggeriscono una relazione di equilibrio di lungo periodo fra le tre variabili e causalità biunivoca fra le tre variabili in tutto il campione. I risultati panel VAR suggeriscono che: (i) le infrastrutture di telecomunicazione hanno un impatto negativo sull’industrializzazione e positivo sulla crescita; (ii) l’industrializzazione ha un impatto negativo sulla crescita il che implica l’inabilità della stessa a guidare la crescita nelle regioni. Pertanto, c’è necessità di promuovere politiche realistiche in grado di potenziare contemporaneamente le infrastrutture di telecomunicazione, i livelli di industrializzazione e la crescita economica nei paesi/regioni in via di sviluppo.

Suggested Citation

  • Saba, Charles S., 2023. "Investigation of Telecommunication Infrastructures-Industrialisation-Growth Nexus: Evidence from Disaggregated Panel Data Analysis," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 76(2), pages 209-264.
    • Handle: RePEc:ris:ecoint:0944
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    More about this item

    Keywords

    Regional Groupings; Panel VAR-Granger Causality; Telecommunication Infrastructures; Industrialisation; Economic Growth;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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