Telecommunications Infrastructure and Chinese Economic Growth
Read
DownLoad |
| Title | Telecommunications Infrastructure and Chinese Economic Growth
|
| Author | Zheng Shilin Zhou Li-an and He Weida |
| Organization | Chinese Academy of Social Science;Beijing University; University of Science and Technology Beijing |
| Email | zhengsl@cass.org.cn;zhoula@gsm.pku.edu.cn；hewd@manage.ustb.edu.cn |
| Key Words | Infrastructure; Economic Growth; Telecommunications Industry; Economic Reform |
| Abstract | In response to the financial crisis, many countries provided the telecommunications infrastructure stimulus plan to seize the opportunity of the next information revolution since 2008. Using the exogenous variables of telecommunications reform to overcome the endogeneity between telecommunication infrastructure and economic growth, we separately examined fixed and mobile telephony infrastructure on economic growth effect during the different industrial development period. We find that mobile phone and fixed phone infrastructure complementarily promotes economic growth in the early build out period (1990-1999). Telecommunications industry quickly has entered into the more mature period (2000-2010) since 2000. We find that mobile services contribute much more to growth but that the effect diminishes over time as the markets for these services become more mature. Due to the abandonment of PHS infrastructure and duplicative construction of fixed telephone infrastructure, the fixed telephone infrastructure is significantly negatively correlated with economic growth. Our results not only show that the traditional telecommunications infrastructure has more and more small space to contribute to the economic growth, but also indicate that the development of telecommunications infrastructure should be put emphasis on the industrial lifecycle so as to avoid the abandonment of the large-scale infrastructure result in damaging on the economic growth quality. |
| Serial Number | WP629 |
| Time | 2014-08-05 |
|