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| Author: | Dutta, A. |
| Title: | Telecommunications and Economic Activity: An Analysis of Granger Causality |
| Journal: | Journal of Management Information Systems
2001 : SPRING, VOL. 17:4, p. 71-96 |
| Index terms: | MIS ECONOMICS ANALYTICAL REVIEW |
| Language: | eng |
| Abstract: | This paper analyzes aggregate data at the national level to see if there is any empirical evidence that supports this assumption. It applies the well established Granger test for causality using time series data for levels of telecommunications infrastructure and economic activity from thirty countries. It finds that the evidence for causality from levels of telecommunications infrastructure to economic activity is stronger than that for causality in the opposite direction. Moreover, this pattern appears to hold for both industrialized and developing economies, even though the former has strong service sectors that are heavily dependent on telecommunications. These findings provide additional insights into the complex relationship between telecommunications and economic activity. |
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