DIFFERENT COUNTRIES, DIFFERENT OUTCOMES: MULTIPLICATIVE EFFECTS OF BROADBAND INVESTMENTS IN WESTERN BALKAN COUNTRIES

Davor Mikulic () and Tajana Barbic ()
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Davor Mikulic: The Institute of Economics, Zagreb, Croatia
Tajana Barbic: The Institute of Economics, Zagreb, Croatia

Economic Thought and Practice, 2025, vol. 34, issue 1, 43-63

Abstract: The paper aims to determine in what way different structures of economies may contribute to discrepancies in the short-term economic effects of broadband investments. The paper uses the input-output methodology to explore the multiplicative impact of broadband investments in six Western Balkan countries. The multiplicative effects of broadband investments on gross value added, employment, imports and tax revenues are calculated, which in turn can affect the investment propensity and condition appropriate policy responses. The results reveal significant economic benefits, including increased output, job creation, and government revenue, underscoring the importance of supportive government policies and regulatory frameworks.

Keywords: firm entry; digitally intensive sectors; broadband speed; digital transformation; Croatia; spatial spillovers (search for similar items in EconPapers)
JEL-codes: C67 H54 L96 O33 R11 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.17818/EMIP/2025/3

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