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Broadband penetration and economic growth in ASEAN countries: a generalized method of moments approach

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  • Tuan Hock Ng
  • Chun Teck Lye
  • Ying San Lim

Abstract

Broadband infrastructure has numerous economic potentials. This study examines the impact of broadband penetration on economic growth in the panel of 10 countries of the Association of Southeast Asian Nations (ASEAN) from 1998 to 2011. Based on the pooled Ordinary Least Squares (OLS), fixed effects and random effects estimates, we found that broadband deployment has a positive relationship with economic growth. In addition, we used the Generalized Method of Moments (GMM) dynamic panel data model to address the reverse causality and potential endogeneity issues in this study. The result also reveals that broadband penetration appears to be a key factor in the explanation of Gross Domestic Product growth. The finding remains robust even after the control for Information and Communication Technology (ICT) goods imports. This result in turn suggests that the utilization of broadband infrastructure and application is expected to enhance the national aggregate outputs.

Suggested Citation

  • Tuan Hock Ng & Chun Teck Lye & Ying San Lim, 2013. "Broadband penetration and economic growth in ASEAN countries: a generalized method of moments approach," Applied Economics Letters, Taylor & Francis Journals, vol. 20(9), pages 857-862, June.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:9:p:857-862
    DOI: 10.1080/13504851.2012.754538
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    Cited by:

    1. Ayesha Afzal & Saba Fazal Firdousi & Ayma Waqar & Minahil Awais, 2022. "The Influence of Internet Penetration on Poverty and Income Inequality," SAGE Open, , vol. 12(3), pages 21582440221, August.
    2. Lurong Chen, 2017. "Developing Asia in the Era of Cross-border E-commerce," Working Papers DP-2017-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    3. Jitsuzumi, Toshiya, 2015. "Means and ends toward the broadband society: Net neutrality and over-the-top players," 2015 Regional ITS Conference, Los Angeles 2015 146328, International Telecommunications Society (ITS).
    4. Rudra P. Pradhan & Mak B. Arvin & Sahar Bahmani & Sara E. Bennett, 2017. "Broadband penetration, financial development, and economic growth nexus: evidence from the Arab League countries," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 10(2), pages 151-171, May.
    5. Tanja Broz & Goran Buturac & Miloš Parežanin, 2020. "Digital transformation and economic cooperation: The case of Western Balkan countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 697-722.
    6. Elena Toader & Bogdan Narcis Firtescu & Angela Roman & Sorin Gabriel Anton, 2018. "Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    7. Sri Fadilah & Rini Lestari & Mohd Hadafi Sahdan & Ahmad Zamil Abdul Khalid, 2020. "The Impact of Renewable Energy Consumption on the Economic Growth of the ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 602-608.
    8. Amir Manzoor, 2014. "Investigating the Factors Affecting Residential Consumer Adoption of Broadband in India," SAGE Open, , vol. 4(4), pages 21582440145, October.
    9. Gao, Yanyan & Zang, Leizhen & Sun, Jun, 2018. "Does computer penetration increase farmers’ income? An empirical study from China," Telecommunications Policy, Elsevier, vol. 42(5), pages 345-360.
    10. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 21st century: Making the evidence stronger," Telecommunications Policy, Elsevier, vol. 44(2).

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