Broadband Infrastructure and Economic Growth in Rural Areas

Alisher Aldashev and Birzhan Batkeyev

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

Abstract: Using unique data from a systematic roll-out of broadband infrastructure in rural areas, we provide evidence on the impact of high-speed internet via broadband on three main sectors of economy: retail, agriculture, and manufacturing. Our instrumental variable model, which relies upon the timing of the roll-out at the first stage, shows that in general broadband access does not foster economic growth, but positively affects the retail sector, with no effect on the manufacturing and agricultural sectors. We also find that the biggest effects are found for speeds below 10 Mbps. We supplement our findings by exploring potential mechanisms that could drive the results.

Keywords: Broadband; Economic Growth; Rural Areas (search for similar items in EconPapers)
JEL-codes: H54 L96 O18 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:57:y:2021:i:c:s016762452100024x

DOI: 10.1016/j.infoecopol.2021.100936

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