Internet infrastructure and regional convergence: Evidence from Turkey

Celbiş, Mehmet Güney; Crombrugghe, Denis de

doi:10.1111/pirs.12244

Cited by 30 publications

(17 citation statements)

References 79 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Estimation of elasticity parameter of the growth of real GDP per capita to internet user ratio is positive. This is in line with research conducted by Celbis and Crombrugghe (2016). At the level of the APT area as whole in the 2001-2014 period, an increase in the internet users ratio will increase the growth of real GDP per capita.…”

Section: The Effect Of Internet User Ratios On the Growth Of Real Gdpsupporting

confidence: 71%

The Analysis of Income per Capita Convergence on ASEAN Plus Three (APT) Countries

Fatiwetunusa¹,

Syamsurijal

Yuliana

2017

Sriwijaya Int. J. of Dynamic Eco. And Buss.

View full text Add to dashboard Cite

The main objective of this study is to test the convergence of income per capita in APT countries through three models: absolute convergence, conditional convergence and sigma convergence. Regression analysis of panel data from 13 APT countries during the period of 2001-2014 is used to analysed to study problem. In absolute convergence model, the growth of real GDP per capita and initial real GDP are used as the variables, meanwhile, 8 variables such as the growth of real GPD per capita, initial real GDP per capita, labor force ratio, value added in agricultural sector, value added in industrial sector, terms of trade, foreign direct investment and internet users ratio are analyzed in conditional convergence model. According to the Solow model, the economies of the countries will converge in which the growth of income per capita of developing countries will be higher than those of developed countries. The economies will be convergent if the countries tend to move to a similar steady state resulting in smaller gap between the countries. Based on the results of absolute convergence and conditional convergence models, APT countries is converging with the rate of 2% and 2.2%. This is consistent with the results of sigma convergence model that shows a declining trend in the dispersion of real GDP per capita in APT regions. The growth of real GDP per capita is influenced by initial GDP per capita, labor force ratio, value added in agricultural sector, value added in industrial sector, terms of trade, foreign direct investment and internet users ratio. Developed countries such as Singapore, Brunei Fatiwetunusa, Syamsurijal, Yuliana/SIJDEB, Vol 1(1), 2017, 51-76 52 Darussalam and South Korea experience the impact of high real GDP per capita growth. On the contrary, Indonesia, Laos, Vietnam and The Phillipines undergo the impact of low GDP per capita growth.

show abstract

Section: The Effect Of Internet User Ratios On the Growth Of Real Gdpsupporting

confidence: 71%

The Analysis of Income per Capita Convergence on ASEAN Plus Three (APT) Countries

Fatiwetunusa¹,

Syamsurijal

Yuliana

2017

Sriwijaya Int. J. of Dynamic Eco. And Buss.

View full text Add to dashboard Cite

show abstract

“…In particular, Grubesic and Murray () note the dramatic differences in broadband Internet competition between rural and urban areas, while Grubesic () identifies core and periphery regions of broadband. Others have suggested that the diffusion of Internet infrastructure may serve to reduce income inequality (Celbis & Crombrugghe, ). Spatial econometric techniques have commonly been applied in this arena, since acknowledging the spatial nature of broadband is an important component of developing an appropriate theoretical model.…”

Section: Literature Reviewmentioning

confidence: 99%

Broadband's relationship to rural housing values

Deller

Whitacre

2019

Papers in Regional Science

View full text Add to dashboard Cite

Using data for remote rural US counties (n = 887) we estimate the impact of broadband Internet access on median housing value. We account for spatial dependencies in the joint determination of investments in broadband access and housing values using a modified spatial three stage least squares (3SLS) estimator. The data support the central hypothesis that remote rural housing values are positively impacted by higher access. Our estimates suggest that there are declining returns to speed availability, with access to at least some type of Internet being more valuable than having only a very high‐speed connection accessible.

show abstract

“…When only lag GDP per capita, population growth and FDI are included as in column (2), the convergence speed is 11.2 percent which implies that it would take 6.2 years for Vietnamese provinces to close half the gap to their steady states. This speed is relatively high compared to the commonly founded 2 percent in previous literature (Abreu et al, 2005) but is consistent with what has been observed among provinces in other developing countries such as China (Hong and Sun, 2011) or Turkey (Celbis and Crombrugghe, 2016). Interestingly, the significant estimation of FDI capital confirms its positive impact on provincial income.…”

Section: Fdi Technology Levels and Income Convergencesupporting

confidence: 88%

Essays on Foreign Direct Investment, International Trade, and Inequality

Ngo¹

View full text Add to dashboard Cite

<p>This thesis consists of three empirical essays on the impact on inequality of Foreign Direct Investment (FDI), international trade, and technological progress that comes with them. The first essay examines whether FDI contributes towards income convergence of the host country, drawing evidence from provincial data in Vietnam. Using the spatial econometrics approach and an exogenous set of distance-based weights to characterize spatial dependences, we identify the substantial role of both spatial interactions and FDI spillovers in bringing provinces closer together in terms of income level. We show that high-tech FDI and industry FDI agglomerations contribute significantly more towards the convergence process than low-tech FDI and agglomerations formed by FDI firms coming from the same country. A similar pattern also emerges when we consider consumption convergence. The second essay studies the impact of local labour demand shocks from FDI firms on wage distribution, using microdata from the Vietnam Household Labour Force Survey. We use Bartik shift-share instrument based on the interaction between predetermined local employment structure and time-varying nationwide employment to deal with the endogeneity between local wage level and multinational firms’ locational decisions. Overall, we find that surges in foreign hiring increase average local wage, but the benefits are considerably higher for workers who work in lower-skilled occupations or have lower educational attainments. Given the prevailing skill and education wage premium, this heterogeneous effect provides evidence that the presence of FDI firms can reduce wage inequality. The third essay analyzes the association between income inequality, dependence on the manufacturing sector, and the availability of vocational education as an alternative track to general tertiary education. We find that in countries where tertiary and vocational are the two main available pathways for students to pursue, as economic recovery, trade, and automation increases the value-added of the manufacturing sector but decreases the number of manufacturing jobs, improving access to vocational education is associated with a larger decline in inequality compared to tertiary education. Therefore, in the long run, limited public resources should be directed towards vocational education in order to smooth out adjustment to trade and skilled-biased technological change. A case study comparing the United States and Germany in terms of their recovery paths from the Global Financial Crisis provide further evidence for our claims.</p>

show abstract

Internet infrastructure and regional convergence: Evidence from Turkey

Cited by 30 publications

References 79 publications

The Analysis of Income per Capita Convergence on ASEAN Plus Three (APT) Countries

The Analysis of Income per Capita Convergence on ASEAN Plus Three (APT) Countries

Broadband's relationship to rural housing values

Essays on Foreign Direct Investment, International Trade, and Inequality

Contact Info

Product

Resources

About