The antiquated state of the telecommunications network in the transitional economies of Central and Eastern Europe has been identified by the OECD (1993) and the ITU (1994) as a significant impediment to regional productivity, international competitiveness and trade performance. This situation suggests that the upgrading and extension of the telecommunications network should be a priority objective for policy-makers in order to facilitate growth. This paper empirically examines the relationship

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... between gross fixed investment, telecommunications infrastructure investment and economic growth for a sample of transitional economies in Central and Eastern Europe. In particular, the paper focuses on empirically determining the direction of influence, and timing, between investment and growth.