What Drives Investment in Telecommunications Markets? Evidence from OECD Countries
Ulrich Heimeshoff, Heinrich Heine University Düsseldorf, 2013-05-06
Recent studies provide clear evidence that the quality of telecommunications infrastructure has strong impacts on economic growth. Especially in Germany there is a
controversial debate how to stimulate telecommunications investment to foster the
introduction of Next Generation Networks. To find appropriate policies to enhance
infrastructure investment one has to get a thorough understanding of the determinants
of infrastructure investment. Using a panel consisting of 30 OECD countries for the
period 1990 to 2011 and taking account of possible non-stationarities in aggregate
data, we investigate the main drivers of telecommunications investment on an aggregate level applying dynamic panel data methods. Our main finding is an inverted
U-shaped relationship between per capita telecommunications investment and competition.
year: | 2013 |
volume: | 64, Issue 1 |
pages: | 7-28 |
JEL: | K23, L51, L96 |
keywords: | competition next_generation_networks regulation telecommunications_investment |
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