Investment in Telecom and Economic Growth of Developing Asian Countries: A Case Study of Panel Data Analysis

Abstract

The study presents the new regression estimates of the relationship between telecom investment and GDP per capita growth for selected developing Asian countries over the period 1999­2014. Pooled OLS and Fixed effect techniques are used to measure the country group effects, individual country effects and time effects also while exploring the relationship between telecom sector investment and GDP per capita growth with other explanatory variables like gross capital formation, population growth, trade openness, internet users and inflation. The results suggested that GDP per capita growth for India, Indonesia, Pakistan, Philippines, Sri Lanka and Thailand had a positive relationship with telecom investment and changed much due to explanatory variables effects, individual country effects and as well as time effects also. Based on results the authors have suggested that increase in telecom sector investment would be a better option for more and sustained economic growth for the long run and also improve the welfare of the society.