Effect Of Development Of Communication Industry On Economic Growth

As global communication technology has developed rapidly and appliedextensively, communications industry based of ICT has attracted more and moreattention. The nation, communication operators and various sectors of the industrychain had paid great attention. So, China’s economic and social operation has paid fullattention on the basic and strategic position of communications industry. In thedevelopment of modern industry system, the communication industry is the foundationof forming strategic emerging industries and a key support to promote the adjustmentof economic structure.Under this circumstance, this paper analyzes the interaction betweencommunication industry and economic growth, based on data from Chinesetelecommunications industry and economic statistics between2002and2012. The firsttwo parts introduce the background and overview of related research, and review thestatus of the communications industry research. Then, it defines the communicationindustry and uses the operational data of communications industry from2002to2012to analyze the international and domestic communication industry status comparatively.After that, it uses the principal component analysis to estimate the comprehensivedeveloping level index of communication industry. Using the comprehensive indexwith labor, capital elements and the overall economic level to do Cobb-Douglasproduction function analysis, the OLS model is established. It uses the input-outputanalysis model to analyze the degrees of induction and influence of communicationindustry and three industries. Finally, it summarizes the research results and makespolicy recommendations and research prospects.The results reveal that communication industry is actively important for thepromotion of total economic efficiency. In sub-industry study, although the inductiondegree of communication industry was highlighted in a late stage, the promotingfunction of communication industry is particularly evident. Its role in stimulatingvarious sectors always remains above the average level of society. C-D productionfunction analysis also showed that the talent, capital factor contributed less toeconomic growth than communication elements. In general, communication industryhas great importance in developing national economy. Both the optimization andupgrading of industry structure and the formation of strategic emerging industries are supported by effective implementation of communication industry strategy. Thus, theeffectiveness and practicability of the communication industry strategic will beimportant principles for achieving the osmosis of communication industry in China.