Punu, Joshua M.
BSA 2-2
Economic Development
Prof. Abraham Camba Jr.
Reaction Paper on “The Cointegration Relationship and Causal Link of
Internet Penetration and Broadband Subscription on Economic
Growth: Evidence from ASEAN Countries"
In today's modern times, where almost everyone on the planet knows how to use a
cellphone or gadgets, I think that an internet connection is the first thing we want to have after a
fully charged device. We want faster and cheaper internet and broadband descriptions, where we
can access all sites, use it when researching, or even make a deal online. Websites and e-commerce
platforms became meeting grounds for those who want to buy or sell a specific item. And these
are things that I have observed while reading the research about 'The Cointegration Relationship
and Causal Link of Internet Penetration and Broadband Subscription on Economic Growth:
Evidence from ASEAN Countries by Prof. Aileen L. Camba and Prof. Abraham C. Camba, Jr.'
Economic growth is driven by different factors from human capital, natural resources up
to technological knowledge. But there is a thing today that moves all of it forward, and it's the
internet connectivity and data subscription. Based on the research data, I can see the direct
implications of fast internet connection to a country's growth in the Southeast Asian region. It
seems that businesses and individuals now prefer transacting and dealing online because there is
less hassle than the traditional way of transacting. It is way cheaper than asking for a middleman
to make a deal. In my opinion, the government must improve each of their policies and regulations
to support internet and data subscription in their own country to stabilize the market and make
more opportunities for small-time businesses to start and grow. Also, to encourage big-time
corporations to widen the reach better to deliver their goods and services.
Just for a better understanding, let's take the Philippines, for example. Among all ASEAN
countries, the Philippines have one of the most expensive and slowest internet and data
subscriptions. That sometimes, even government agencies tend to lag or crash when there is so
much traffic on their sites. Slow internet also impedes businesses to make smooth trades and
services, and individuals tend to spend more cash on data subscriptions. In contrast, instead, they
can invest it in a more profit-oriented activity.
However, even though faster and cheaper data subscription must be one of the
government's priorities, they must still regulate its proper use and make policies that will secure
customers' private information. Laws that will help track scammers and malicious transactions
must also be dealt with.
All in all, in this research, I see that internet connectivity and data subscription have a direct
relationship with the economic growth of a country. If a government wants to catch up and
maintain average growth, this thing must be prioritized. Because if not, it will become a country
where people still need to climb a post tor tree to get some signal and eventually become isolated
and will be left behind by its neighboring countries.