TELECOMMUNICATIONS INFRASTRUCTURE AND ECONOMIC-GROWTH - AN ANALYSIS OF CAUSALITY

Time series analyses of 31 years of US data (1958-88, inclusive) were consistent with two causal hypotheses. First, the level of US economic activity at any point in time is a reliable predictor ('cause') of the amount of US telecommunications investment at a later point in time. Second, the amount of US telecommunications investment at any point in time is a reliable predictor ('cause') of the level of US economic activity at a later point in time.