Study On The Relationship Between Telecom And The Regional Economic Growth In China

In the knowledge economy era, telecommunications infrastructure plays an important role in the process of information dissemination and diffusion, the relationship between telecom-industry and economic growth is becoming a concern of many scholarsThis article selects "gross domestic product" to measure the regional economy, notes for gdp and selects "total telecommunications business" to measure the telecom-industry development, notes for the tel. Speaking of the research methods, this article is based on panel data method, to carry out empirical test of the causal relationship between economic growth and telecom-industry of China’s eastern and western provinces from2000to2011.In the empirical analysis, first of all, we carry out the panel unit root test to review the stationarity of data, finding that Ingdp and Intel,the logarithmic form of variable, as first-order single integer variables both in east and west area, namely the variables show stationarity after first order difference, this operation is to ensure the reliable of subsequent analysis.On the basis of panel unit root test, this article carry out panel cointegration test data using Kao test methods, and the results show that economic growth and telecom-industry have long-term stable equilibrium relationship both in eastern and western region. To verify the specific direction of the relationship, based on panel vector autoregressive model, we further cany out granger causality test to variables. It was found that only in the eastern region which is more developed, there is a granger causality from economic growth to the telecom-industry, while in the relatively backward western regions, there is no granger causality between economic growth and telecom-industry. Based on the panel vector autoregressive model, impulse response and variance decomposition results also show that the relationship between economic growth and telecom-industry is greater in eastern region than in the western region.Combining with the theory of economic growth, industrial structure and regional economy related theory analysis, the empirical test results in the above are discussed deeply. We argue that the mechanism of action between economic growth and regional telecom-industry affected by many factors. The industrial structure and the economic level as well as penetration and development of the industrial application of telecoms will affect the interaction between telecom-industry and economic growth. Therefore, this article suggested that in view of the specific differences between eastern and western provinces, implementation of industry application solutions should be taken into account in order to achieve the benign interaction between economic growth and telecom-industry.