Literature Review of the Economic Impacts of Broadband

Atakan Bakiskan and Sarah El Kaissi

No 2023-06, CSLS Research Reports from Centre for the Study of Living Standards

Abstract: This comprehensive literature review examines the economic impacts of broadband, with a focus on productivity and economic growth. Incorporating 55 quantitative economic papers covering cross-country, firm-level, and industry studies, we provide detailed explanations of data choices, methodologies, and key findings. We explore various measures used to quantify broadband impacts, including penetration rates, speed, and technology adoption. We analyze studies on broadband's effects on total output, total factor productivity (TFP), employment, and the applications enabled by broadband, such as social media, e-commerce, and cloud computing. Methodological challenges, such as endogeneity and data limitations, are discussed, underscoring the need for improved methodologies and data to accurately assess broadband's economic impact. Overall, findings indicate a generally positive association between broadband penetration and output and labour productivity, despite some mixed results from earlier studies. More recent studies with improved methodologies consistently demonstrate a positive impact. Similarly, studies on TFP and employment reveal a positive influence of broadband.

Keywords: broadband; internet; labour productivity; total factor productivity; employment; literature review; economic impacts; digital infrastructure (search for similar items in EconPapers)
Date: 2023-09
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