Abstract:

In recent years, China’s comprehensive capability of communications is increasing rapidly and the telecom industry is developing fast. Using the partially closed input-output model, the multiplier effects of China’s telecom industry on national economy in the years of 2007 and 2011 are estimated. In addition, empirical analysis of these data is made to research the relationship between China’s telecom industry and the national economy and their change. The results show that the absolute value of the multiplier effects of telecom industry has improved from 2.98 in 2007 to 4.27 in 2011. Meanwhile, the rank of the multiplier effects of telecom industry in all of the industries has risen, and its growth rate ranked first with the number of 43.18%, which shows the strong economic vitality and investment prospect.

Key words: telecom industry, partially closed input-output model, multiplier effect, national economy