Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries

Syed Atif (), James Endres and James Macdonald

MPRA Paper from University Library of Munich, Germany

Abstract: Broadband infrastructure facilitates the generation and distribution of decentralised information and ideas in a knowledge economy comprising of markets that rely on information as an input. This paper analyses the effect of broadband penetration on output per capita by estimating a static fixed effects model and a basic linear dynamic model using an annual panel of 31 OECD countries over a period from 1998 to 2010. The results suggest that broadband penetration has had a positive impact on economic growth, and a 10 percent increase in the growth of broadband penetration will raise economic growth per employee by approximately 0.035 percentage points. The conclusion adds further weight to calls for Governments to adopt policies that accelerate broadband penetration and promote investment in broadband infrastructure.

Keywords: OECD; Broadband; Endogenous Growth Theory (search for similar items in EconPapers)
JEL-codes: C23 O11 O33 (search for similar items in EconPapers)
Date: 2012-06-30
New Economics Papers: this item is included in nep-fdg and nep-ict
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Citations: View citations in EconPapers (7)

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Working Paper: Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42177

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