Accounting for telecommunications contribution to economic growth: a study of small Pacific Island states

Kumar, Ronald R. and Kumar, Radika D. and Patel, Arvind (2015) Accounting for telecommunications contribution to economic growth: a study of small Pacific Island states. Telecommunications Policy, 39 (3-4). pp. 1-12. ISSN 0308-5961

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Abstract

Noting the developments in the telecommunications sector in Small Pacific Island States (SPIS), this paper explores the effect of telecommunications on per worker output over the periods 1979–2012. We use the ARDL bounds procedure within an augmented Solow framework to explore the effects. Additionally, we examine the causality effect using the Toda and Yamamoto procedure. The results show that telecommunications contribute 0.33% in the short-run and 0.43% in the long-run to output per worker; a bidirectional causality between capital per worker and output per worker, and unidirectional causality from telecommunications to output per worker, and capital per worker, respectively, are noted. Subsequently, we emphasize the need for greater innovation and competition in the telecommunications sector, and linking cutting-edge communication technologies to key sectors to boost efficiency and productivity in the long-run.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HE Transportation and Communications
Divisions:	Faculty of Business and Economics (FBE) > School of Accounting and Finance Faculty of Business and Economics (FBE)
Depositing User:	Ronald Kumar
Date Deposited:	24 Feb 2015 05:17
Last Modified:	12 Sep 2016 00:52
URI:	https://repository.usp.ac.fj/id/eprint/7947

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