IMPACT OF CAPITAL AND LABOR ON GDP OF OECD-MEMBER COUNTRIES WITH HIGH AND LOW BROADBAND INFRASTRUCTURE

Abstract

This research has the objective to investigate the effect of capital and labor towards GDP growth. This paper analyses the effect of capital and labor by estimating static fixed effect model and a basic linear dynamic model using an annual panel of OECD countries over a period 2003-2012. To obtain more detailed results, the researcher divided these countries into two groups which are high and low broadband countries. This study will compare the impact of capital and labor in each group. The result of this study shows that labor is the main factors who affect the GDP in all OECD countries. For some reasons, this result also suggest capital and labor in low broadband countries give more impact than capital and labor in high broadband countries.