Title: More penetration, more growth? A panel cointegration analysis for the OECD countries

Authors: Rudra P. Pradhan; Samadhan Bele; Shashikant Pandey

Addresses: Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur WB 721302, India; School of Management, Asian Institute of Technology Bangkok, Pathumthani – 12120, Thailand ' RCG School of Infrastructure Design and Management, Indian Institute of Technology Kharagpur, WB 721302, India ' Vinod Gupta School of Management, Indian Institute of Technology Kharagpur, WB 721302, India

Abstract: The paper investigates the causal relationships between penetration rate, an indicator of telecommunications development, and economic growth of 34 OECD countries during the period 1960-2010. The panel model is used in this study. Based on the panel cointegration test results, is found that penetration rate has a long run relationship with economic growth. Moreover, there is also a bidirectional Granger causality between penetration rate and economic growth in both the short run and long run. The results of this study show clearly that telecommunications development plays an important role in the economic growth of the OECD countries. Furthermore, these results can reinforce the importance of economic growth for the continued development and use of various telecommunications services in those countries.

Keywords: penetration rate; economic growth; panel cointegration analysis; OECD countries; telecommunications development; telecommunications services.

DOI: 10.1504/IJPP.2013.056582

International Journal of Public Policy, 2013 Vol.9 No.4/5/6, pp.371 - 388

Received: 13 Nov 2012
Accepted: 08 Apr 2013
Published online: 31 Jan 2014 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article