The economic impact of investment in infrastructures of telecommunications in Spain: 1964‐1993.
| Pages | 35-48 |
| Date | 01 March 1999 |
| DOI | https://doi.org/10.1108/13287269980000743 |
| Published date | 01 March 1999 |
| Author | Rafael Flores de Frutos,Mercedes Gracia‐Dìez,Teodosio Pèrez‐Amaral,Pedro J. Vega‐Catena |
| Subject Matter | Information & knowledge management |
Journal of Systems & Information Technology 3(1)
35
THE ECONOMIC IMPACT OF INVESTMENT IN
INFRASTRUCTURES OF TELECOMMUNICATIONS IN SPAIN:
1964-1993.
Rafael Flores de Frutos,
Mercedes Gracia-Díez,
Teodosio Pérez-Amaral,
Pedro J. Vega-Catena
Departamento de Economía Cuantitativa
Facultad de Ciencias Económicas
Universidad Complutense de Madrid
Madrid, Spain
Mail address: Teodosio Pérez-Amaral, Departamento de Economia Cuantitativa, Facultad de
Economicas, Universidad Complutense de Madrid, Somosaguas, 28223, Madrid, Spain
eccua10@sis.ucm.es
ABSTRACT
In this paper we address the question of how telecommunications affect economic growth,
by estimating the effect of direct investment in telecommunications infrastructures on
aggregate output, employment, and investment in Spain. In contrast with previous studies,
the problem is analyzed in a dynamic multivariate framework which allows for explicit
consideration of feedbacks among all the variables. We find significant effects o f the
investment in infrastructures of telecommunications on aggregate output, employment and
investment which extend for several years. This might justify a policy for stimulating
investment in this sector.
INTRODUCTION
The effect of investment in infrastructures on economic growth has been an issue of a recent
debate in many countries. The pioneer work of Aschauer (1989a, b) suggests that while
current public expenditure decreases productivity and economic growth, public investment
in infrastructures increases private productivity, finding a positive net effect in the U.S. for
the period 1952-1986. Using these results, Aschauer (1989b) explains the stagnation of the
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