Liberalization of EU telecommunications and trade: theory, gravity equation analysis and policy implications

Abstract

Foreign trade, Gravity model, Telecommunications, C21, F14, F17, L96,

The effect of broadband on European Union trade: A regional spatial approach

“…ICT contributes to the generation and diffusion of information flows across territories, regardless of territorial disaggregation. Higher ICT use and a greater amount of ICT infrastructure decrease fixed transaction costs which include, among others, entry costs to foreign markets (Freund & Weinhold, 2004), coordination costs related to the production processes (Demirkan, Goul, Kauffman, & Weber, 2009), interaction costs between the firm and the customer (Adjasi & Hinson, 2009) and information costs, such as the customer being able to easily compare the prices set by different sellers (Jungmittag & Welfens, 2009).…”

Information & communication technology and true real GDP: economic analysis and findings for selected countries

“…The main impact of ICT on economic growth from an analytical perspective in a simple enhanced quasi-neoclassical growth model comes from four elements ICT can increase trade, the export intensity and the import intensity, respectively (Jungmittag and Welfens 2009). ICT could reduce the learning costs (see the parameter λ) ICT could reinforce the international innovation spillover effect-the typical finding in the literature that innovation spillovers have a rather limited radius (about 300 km or so is relevant here, however in the internet distance should play a more limited role for the creation of innovations and for the diffusion and spillover processes.…”

Transatlantic trade and investment partnership: sectoral and macroeconomic perspectives for Germany, the EU and the US

“…there should be common rules in all EU countries about the auctioning of telecommunications licenses, including options to sell such licenses in secondary markets -here there is a field where a common transatlantic policy approach would be useful. If more competition and a more efficient exploitation of static and dynamic scale economies would help to further bring down international telecommunication prices one may expect a rise of trade: Jungmittag and Welfens (2009) have presented empirical evidence that a fall of international telecommunication prices and rising international telecommunications calls, respectively, raise the volume of international trade as a consequence of declining international information costs. Thus regulatory policy in telecommunications is an example where TTIP could stimulate the modernization of regulatory policies and indeed a joint transatlantic approach in digital regulation -this in turn could then reinforce transatlantic and global trade and thereby reinforce the benefits from TTIP.…”