The heterogeneous role of broadband access on establishment entry and exit by sector and urban and rural markets

Yulong Chen, Liyuan Ma and Peter F. Orazem

Telecommunications Policy, 2023, vol. 47, issue 3

Abstract: Broadband access has heterogeneous effects on establishment entry and exit across industries and across urban and rural markets. On average, broadband encourages establishment entry and reduces establishment exit. Broadband entry results in a positive net entry in both urban and rural markets. The effect of broadband varies across sectors, with net establishment gains in construction and professional services in both urban and rural markets. Net establishment gains in finance and insurance, real estate, information, and arts and entertainment were confined to urban markets. Net establishment losses were experienced in urban retail and in rural manufacturing and hospitality sectors. Broadband also leads to a net reallocation of establishments in educational services from rural to urban areas.

Keywords: Broadband; Establishment entry; Establishment exit; Churning (search for similar items in EconPapers)
JEL-codes: L86 M13 R11 R12 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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DOI: 10.1016/j.telpol.2023.102504

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