Title: Relationships between telecommunications infrastructure, capital formation, and economic growth
Authors: Rudra P. Pradhan; Mak B. Arvin; Jay Mittal; Sahar Bahmani
Addresses: Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur WB 721302, India ' Department of Economics, Trent University, Peterborough, Ontario K9J 7B8, Canada ' Auburn University, Auburn, AL 36849, USA ' Department of Economics, University of Wisconsin at Parkside, Kenosha, Wisconsin 53144, USA
Abstract: This paper examines mutual relationships between telecommunications infrastructure, gross capital formation, and economic growth in the G-20 countries between 1961 and 2012. The countries are assessed individually, as a group of developing and developed countries within two sub-groups, and as a whole. Our results demonstrate that there is a long-run equilibrium relationship between these three variables. We arrive at this conclusion for the two sub-groups, for the G-20 as a whole, as well as for all individual countries. We then use a panel vector auto-regression model to reveal the nature of Granger causality among the three variables. As expected, the results are not uniform and are country and sample dependent.
Keywords: telecommunications infrastructure; TEI; gross capital formation; GCF; economic growth; G-20 countries; VAR; Granger causality.
International Journal of Technology Management, 2016 Vol.70 No.2/3, pp.157 - 176
Received: 23 Jul 2014
Accepted: 07 Dec 2014
Published online: 05 Mar 2016 *