Picking up speed: Does ultrafast broadband increase firm productivity?

Richard Fabling and Arthur Grimes

Information Economics and Policy, 2021, vol. 57, issue C

Abstract: We estimate productivity gains and employment effects of ultrafast broadband (UFB) adoption and test whether effects differ when firms undertake complementary organizational investments. Using an IV strategy based on proximity to schools (that were targeted in the UFB roll-out), we find that UFB adoption has a positive impact on multifactor productivity (MFP) over a four year horizon and a negative impact on employment (potentially due to increased outsourcing). The positive MFP effects are most clearly observed in firms that also make complementary investments to gain the most benefit from their UFB. The negative employment effects are observed especially in firms with initial low computer intensity.

Keywords: Ultrafast broadband; Fibre; Productivity; Organisational change; Complementary investments (search for similar items in EconPapers)
JEL-codes: D22 L23 O33 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Working Paper: Picking up speed: Does ultrafast broadband increase firm productivity? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:57:y:2021:i:c:s0167624521000251

DOI: 10.1016/j.infoecopol.2021.100937

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