Impact of very high-speed broadband on company creation and entrepreneurship: Empirical Evidence

Maude Hasbi

Telecommunications Policy, 2020, vol. 44, issue 3

Abstract: This paper analyzes to what extend the local presence of very high-speed broadband networks has a causal impact on the creation of new businesses and sole proprietorships. Estimations are performed using micro-level panel data covering almost 5000 municipalities in metropolitan France, from 2010 to 2015. A count modeling approach with time- and municipal-fixed effects is first developed. It shows heterogeneous effects across sectors. Municipalities with a very high-speed broadband network tend to be more attractive for companies, with a positive effect on establishment creation within the tertiary sector and the construction sector. In addition, these municipalities seem to provide a more favorable environment for entrepreneurship. However, the benefits of very high-speed broadband are not equally distributed across municipalities and depend on the educational attainment of the population.

Keywords: Fiber; Very high-speed broadband; Local economic growth; Company creation (search for similar items in EconPapers)
JEL-codes: L13 L50 L96 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (24)

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DOI: 10.1016/j.telpol.2019.101873

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