| This dissertation examines the relationship between telecommunications infrastructure and economic development in China. It empirically investigates the role of telecommunication infrastructure in long run regional economic growth of China's provinces over a 17-year period, 1986--2002. A dynamic panel data approach is used for estimation. The results demonstrate that telecommunications infrastructure endowment is significantly and positively correlated to regional economic growth. The results are robust even when controlling for the previous growth, lagged per capita GDP levels, fixed investment, employment rate, population growth, and foreign investment. The results further indicate that the impact of telecommunications investment on growth is subject to diminishing returns, which, in policy terms, suggests that regions at an earlier stage of development are likely to gain the most from further telecommunications investment. Analysis of the determinants of mobile communications adoption indicates that the socioeconomic characteristics played an important role in determining the initial adoption and diffusion speed of mobile communications. Higher levels of real per capita income and openness had a positive impact on the diffusion rates of mobile communications. Previous fixed-line penetration level and transportation density had a negatively significant effect on the diffusion rates. |
