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

Syed Atif (), James Endres and James Macdonald

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

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: Endogenous Growth; Broadband; OECD (search for similar items in EconPapers)
JEL-codes: O11 O33 (search for similar items in EconPapers)
Date: 2012-10-24
New Economics Papers: this item is included in nep-cwa, nep-ict and nep-pbe
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Related works:
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:zbw:esprep:65419

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