The economic impact of broadband: Evidence from OECD countries

Pantelis Koutroumpis

Technological Forecasting and Social Change, 2019, vol. 148, issue C

Abstract: Information networks have a significant impact on modern economies. This is reflected by their adoption and use across countries along with the increasing quality of the networks. As a result, the impacts on the economy are driven both by the level of adoption and the quality of the connections. Looking at the OECD countries between 2002 and 2016, I find a consistent effect of broadband adoption on national economic output with diminishing returns to scale. I also find that speed is a moderator of these effects and identify a speed threshold, beyond which further quality increases are deemed unproductive. This speed-threshold increases over time as more applications and skills become available. The measurement of adoption levels and speeds helps formulate a policy tool that guides the development of new communications networks. It also shapes the key priorities in terms of their coverage and quality trade-offs.

Date: 2019
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:148:y:2019:i:c:s004016251930112x

DOI: 10.1016/j.techfore.2019.119719

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