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PRESS RELEASE – A recent study on “The Impact of Broadband on Economic Growth in ECTEL Member States” has indicated that a one percent increase in the broadband penetration rate would lead to an increase in real economic growth of 0.076 percent.
The findings, according to the report, applies to all Eastern Caribbean Telecommunications Authority (ECTEL) member states as a single group.
The study was commissioned by ECTEL under the CARCIP project, and was the first attempt to empirically test the economic impact of broadband penetration in the five member states. The project was funded by the World Bank, and aims to leverage Information and Communications Technology (ICT) throughout the region.
The results of the study show a positive linear correlation between averaged real economic output and the broadband penetration rate for each ECTEL member state for the period 2012-2014.
Saint Kitts and Nevis stands out among other member states indicating in part the varying levels of investment per capita in broadband technology among ECTEL member states.
The empirical evidence from this study means that governments can now strategically prioritize the communication sector and proceed quickly to modernize the regulatory framework to “purposefully accelerate the delivery of broadband services and provide support for investment in broadband technology.”
The study concludes that the anticipated economic impact from an increase in broadband penetration would definitely contribute to the national effort of putting ECTEL member states on a sustainable growth path.
It was commissioned to quantify the extent to which investment in broadband technology and, by extension, broadband penetration would impact economic growth. An empirical economic model approach using data for the period 2012-2014 was adopted for this study.
CARCIP Project Officer, Winston George, said: “The study was conducted as part of the process to understand the social and economic factors that inhibit the increase in broadband uptake.”
The study was conducted by Consultant Curlan Gilchrist, Associate Professor in the Department of Business and Management at St. George’s University, Grenada.