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Review of Economics

Jahrbuch für Wirtschaftswissenschaften

Editor-in-Chief: Berlemann, Michael

Ed. by Haucap, Justus / Thum, Marcel

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What Drives Investment in Telecommunications Markets? Evidence from OECD Countries

Ulrich Heimeshoff
  • Heinrich-Heine-Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Universitätsstr. 1, 40225 Düsseldorf
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Published Online: 2016-02-11 | DOI: https://doi.org/10.1515/roe-2013-0102


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.

Keywords: next generation networks; telecommunications investment; regulation; competition

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Published Online: 2016-02-11

Published in Print: 2013-04-01

Citation Information: Review of Economics, Volume 64, Issue 1, Pages 7–28, ISSN (Online) 2366-035X, ISSN (Print) 0948-5139, DOI: https://doi.org/10.1515/roe-2013-0102.

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© 2013 by Lucius & Lucius, Stuttgart.

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