Abstract:

In order to help the telecom industy to make more scientific and area investment decision\|making. We study how telecommunications infrastructure in
vestment affects economic growth of China by estimating a structural model with the data set covering 31 provinces from the year 2005 to 2011. We find that telecommunications investment on economic growth has a significant role in promoting, and the output elasticity of telecommunication investment is 0.124. The telecommunication industry is developing rapidly, new services emerge, with good growth potential, should increase the investment of telecom industry. And the empirical study on different regions reveals that there is distinct regional disequilibrium that the investment contribution to productivity in the West is much higher than that in the others. While In telecommunications investment into telecommunications penetration, the eastern region has the highest efficiency.

Key words: telecommunications, investment, economic growth, panel data, regional disequilibrium