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Impact of high-speed broadband access on local establishment dynamics

Martin Falk and Eva Hagsten

Telecommunications Policy, 2021, vol. 45, issue 4

Abstract: The aim of this study is to examine the relationship between high-speed fibre broadband access and establishment dynamics at the municipality level. Special emphasis is placed on micro as well as on small and medium-sized establishments in contracting areas. Data cover information on 290 municipalities in Sweden for the period 2010–2018. Results of Fixed Effects and Spatial Durbin model estimations reveal a significant but rather small direct effect of lagged high-speed broadband access, driven by the micro establishments. However, when the proportion of establishments with high-speed broadband access is combined with the local presence of university educated employees and researchers, a stronger indirect relationship appears. There is also some evidence that the broadband availability in neighbouring municipalities has a spillover effect. A high degree of heterogeneity is found in the results, where the relationship is far weaker in contracting municipalities and in those with a low-skilled workforce.

Keywords: High-speed broadband access; High-skilled employees; Municipalities; Sweden; Spatial econometric models (search for similar items in EconPapers)
JEL-codes: L25 O30 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.telpol.2021.102104

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