The role of the telephone in economic development

Telecommunications Policy (Impact Factor: 1.41). 12/1980; 4(4):278-286. DOI: 10.1016/0308-5961(80)90044-0
Source: RePEc


The author investigates the telephone's role as a contributory agent in economic development. Cross-sectional time series data for 60 nations over 13 years were used to determine how the telephone might make its contribution to economic development. Path analysis and cross-lagged correlation techniques indicate that the telephone does contribute to economic development. This contribution appears to come from the telephone's support of the organization of economic activity.

32 Reads
  • Source
    • "Traditionally studies try to settle the question about the level of inequality in our technological capacities to handle information by assessing the access, usage or impact of the number of installed technological devices (Burgees, 1928, 1929, 1930; Waples, 1942; Cadwallader, 1959; Hardy, 1980; Duttaet al., 2006; ITU, 2012) or the amount of related investments (Jorgenson, et al., 2008). In both cases, a certain level of saturation is increasingly being reached. "
    [Show abstract] [Hide abstract]
    ABSTRACT: This article provides first-time empirical evidence that the digital age has first increased and then (only very recently) decreased global, international, and national inequalities of information and communication capacities among and within societies. Previous studies on the digital divide were unable to capture the detected trends appropriately, because they worked with proxies, such as the number of subscriptions or related investments, without considering the vast heterogeneity in informational performance among technological devices. We created a comprehensive data set (based on over 1,100 sources) that allows measuring information capacity directly, in bits per second, bits, and instructions per second. The newly proposed indicators provide insights into inequalities in access to, usage of, and impact of digitized information flows. It shows that the digital divide has gone into a second stage, which is based on a relative universalization of technological devices and a continuously evolving divide in terms of communication capacity.
    Journal of the American Society for Information Science and Technology 04/2014; 65(4). DOI:10.1002/asi.23020 · 1.85 Impact Factor
  • Source
    • "There is a large string of empirical literature that shows the positive impact of telecommunications infrastructure in general on economic development and growth (e.g. Hardy, 1980; Leff, 1984; Madden and Savage, 2000). "
    [Show abstract] [Hide abstract]
    ABSTRACT: Using annual data from 192 countries over the period 1990–2007, we assess the impact of mobile telecommunications on economic growth. We find that this impact is smaller for countries with a low mobile penetration, usually low income countries. While in low income countries the mobile telecommunications contribution to annual GDP growth is 0.11%, for high income countries this is 0.20%. The increasing returns from mobile adoption are also emerging when assessing the impact on productivity growth. To promote mobile telecommunications penetration liberalization policies along with appropriate regulatory frameworks are recommended. Such policies should be pursued more forcefully in cases where serious shortcomings exist. — Harald Gruber and Pantelis Koutroumpis
    Economic Policy 07/2011; 26(67):387-426. DOI:10.1111/j.1468-0327.2011.00266.x · 2.33 Impact Factor
  • Source
    • "Previous work shows evidence for the economic impact of telecommunication investment on growth for developing versus developed countries (Hardy, 1980), for the U.S. (Cronin et al., 1991) and for manufacturing versus services sectors (Greenstein and Spiller, 1995). Subsequent studies support the results found by Röller and Waverman (2001) for OECD countries (Datta and Agarwal, 2004) and for Chinese regions (Shiu and Lam, 2008). "
    [Show abstract] [Hide abstract]
    ABSTRACT: The paper provides empirical evidence for the causal impact of broadband Internet on the economic performance of German firms. Performance is measured in terms of labour productivity and realised process and product innovations. The analysis refers to the early phase of DSL expansion in Germany from 2001 to 2003, when roughly 60 percent of the German firms already used broadband Internet. Identification relies on instrumental variable estimation taking advantage of information on the availability of DSL broadband at the postal code level. The results show that broadband Internet has no impact on firms' labour productivity whereas it exhibits a positive and significant impact on their innovation activity.
    Information Economics and Policy 01/2011; 25(3). DOI:10.2139/ssrn.1852365 · 0.95 Impact Factor
Show more