Digital Thailand: Analyzing the Impact of Broadband Connectivity on Firm Productivity

Voraprapa Nakavachara

No 132, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: Using a large dataset of almost 100,000 manufacturing establishments in Thailand, this paper studies the impact of broadband internet connectivity on firms' total factor productivity (TFP). The author finds that, for micro-, small-, and medium-sized enterprises, broadband adoption can raise productivity by 23% to 54%. These results support the government's policies in building the country's broadband infrastructure. Although the results reveal substantial benefits of broadband adoption, especially for smaller-sized firms, only about 30% of firms reported adopting broadband or having any types of ICT investments. Perhaps, more could be done to encourage broadband adoptions and private ICT investments for firms of all sizes.

Keywords: Digital Economy; Broadband; ICT; Firm Productivity; Thailand (search for similar items in EconPapers)
JEL-codes: D24 O14 O33 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2020-04
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Citations: View citations in EconPapers (2)

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