A brief statistical analysis of the assumption that the growth of overseas telecommunications traffic has been, and will continue to be, intimately connected with the growth of overseas commodity trade. The record since 1950 does not support the view that trade expansion is a principal cause of the long run (1950-1960) increase in telephone traffic. For telegraph traffic, however, trade is apparently a much more satisfactory explanatory variable. In the short run, changes in the volume of trade account for a large part of the year-to-year changes in both telephone and telegraph overseas traffic.
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