Proceedings of the 20th International Academic Conference, Madrid

RELATIONSHIP BETWEEN TELECOMMUNICATIONS INVESTMENT AND TOTAL FACTOR PRODUCTIVITY

CHUHWAN PARK

Abstract:

This study examines diverse production functions and total factor productivity (TFP) levels of 29 OECD countries by using regional data for the 2003-2013 period and related determinants. First, the relationship between TFP and capital and that between TFP and labor are negative (-). Second, communications equipment investment by type has a negative effect on TFP in which communications capital is considered by type, providing support for the productivity paradox. Third, imports have a negative (-) relationship with TFP, whereas the degree of openness has a positive (+) relationship. Finally, the Asian region has a positive effect on TFP, whereas the American region has the greatest negative effect.

Keywords: TFP, Telecommunications Equipment Investment, Determinants, Random Coefficient Model

DOI: 10.20472/IAC.2015.020.074

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