Performance of Telecommunications in India: Panel Arellano-Bond GMM Estimation of Teledensity
Published: 2021
Author(s) Name: T. Lakshmanasamy |
Author(s) Affiliation: Formerly Professor, Department of Econometrics, University of Madras, Chennai, Tamil Nadu, India.
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Abstract
The growth of telecommunications infrastructure and its performance is at the heart of the digital economy, essential for information
and citizen-centric services. Though India has made rapid strides in the provision of the telecommunications network, the
teledensity is uneven across the states of India. This paper analyses the determinants of teledensity and its distribution dynamics
across 18 Indian states over 15 years between 2004 and 2018 using kernel density plots and the dynamic panel fixed effects
Arellano-Bond GMM estimation technique. The AB-GMM estimates show the network externality, NSDP per capita, service sector
share in NSDP and literacy rate are the important determinants of relative teledensity across the states of India. The kernel density
plots indicate a gradual reduction and convergence of teledensity across states over the years. The half-life estimate suggests
that the speed of convergence is 1.13 years i.e it takes 1.13 years to converge in teledensity across the states of India.
Keywords: Telecommunications, Teledensity, Convergence, Kernel Plots, Arellano-Bond GMM Estimation
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