Causal relationship between telecommunications and economic growth in China and its regions

Shiu A. and Lam P.-L. Causal relationship between telecommunications and economic growth in China and its regions, Regional Studies. This paper studies the causal relationship between telecommunications development and economic growth of China. Its result indicates that there is a unidirectional relationship running from real gross domestic product (GDP) to telecommunications development at the national level. Causality running from telecommunications development to real GDP is found only in the provinces in the affluent eastern region, but not in the low-income central and western provinces. The results imply that an improvement in telecommunications infrastructure alone is not sufficient for stimulating growth in the central and western provinces. It is equally important for the Chinese government to develop and enhance other complementary factors like business environments, transportation networks, education and manpower training in order to make the best use of the telecommunications systems in the central and western provinces.