Broadband Infrastructure and Economic Growth

Nina Czernich, Oliver Falck, Tobias Kretschmer and Ludger Wößmann
Authors registered in the RePEc Author Service: Ludger Woessmann

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: We estimate the effect of broadband infrastructure, which enables high-speed internet, on economic growth in the panel of OECD countries in 1996-2007. Our instrumental variable model derives its non-linear first stage from a logistic diffusion model where pre-existing voice telephony and cable TV networks predict maximum broadband penetration. We find that a 10 percentage point increase in broadband penetration raised annual per capita growth by 0.9-1.5 percentage points. Results are robust to country and year fixed effects and controlling for linear second-stage effects of our instruments. We verify that our instruments predict broadband penetration but not diffusion of contemporaneous technologies like mobile telephony and computers.

Date: 2011
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Citations: View citations in EconPapers (454)

Published in Economic Journal 552 121(2011): pp. 505-532

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Related works:
Journal Article: Broadband Infrastructure and Economic Growth (2011)
Working Paper: Broadband Infrastructure and Economic Growth (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20033

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