Nonlinear Threshold Effect of Telecommunications Infrastructure Development on Economic Growth in D۸ Countries: Panel Smooth Transition Regression (PSTR) Model

This study explores the impact of telecommunication infrastructure development on economic growth in D۸ countries from ۲۰۰۷ to ۲۰۲۲. A panel smooth transition regression (PSTR) model is utilized to analyze this relationship. The chosen transition variable is the information and communication technology (ICT) index. The findings indicate a nonlinear association between the variables examined. The estimated threshold for the logarithm of the transition variable is ۴.۴۴۳۳. Moreover, the results demonstrate that gross capital formation and urban population have a positive and significant effect on economic growth in the first regime. Conversely, financial development has a negative and significant impact on economic growth in the first regime. Furthermore, the results reveal that the urban population continues to have a positive and significant influence on economic growth, although its impact is lower compared with before. Additionally, financial development has a positive and significant effect on economic growth in the second regime.   JEL Classification: O۴۰, O۳۳, C۲۳.

Keywords:

Economic Growth , Telecommunication Infrastructure , D۸ countries , Principal Component Analysis (PCA) , Panel Smooth Transition Regression (PSTR)