EconPapers    
Economics at your fingertips  
 

Breaking Invisible Barriers: Does Fast Internet Improve Access to Input Markets?

Banu Demir, Beata Javorcik and Piyush Panigrahi

No 1061, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper explores how improved internet infrastructure impacts supply chains and economic activity, focusing on Türkiye. Using the expansion of fiber-optic networks and firm-to-firm transaction data, we find that better connectivity shifts input sourcing to well-connected regions and diversifies sup plier networks. We estimate a spatial equilibrium model with endogenous network formation and rational inattention and find that high-speed internet reduced information acquisition and communication costs. Enhanced connectivity increased real income by 2.2% in the median province. Our findings underscore the importance of digital infrastructure investments in fostering economic growth by improving supply chain efficiency and broadening firms’ access to suppliers.

Date: 2024-12-11
New Economics Papers: this item is included in nep-ict and nep-ure
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ora.ox.ac.uk/objects/uuid:9adff6e9-018d-4a1c-8e81-b577252f53c3 (application/pdf)

Related works:
Working Paper: Breaking Invisible Barriers: Does Fast Internet Improve Access to Input Markets? (2024) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oxf:wpaper:1061

Access Statistics for this paper

More papers in Economics Series Working Papers from University of Oxford, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Anne Pouliquen ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-22
Handle: RePEc:oxf:wpaper:1061