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Effects of broadband availability on total factor productivity in service sector firms: Evidence from Ireland

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  • Haller, Stefanie A.
  • Lyons, Sean

Abstract

While broadband is widely believed to augment productivity, there is little firm-level evidence of a generalised causal effect. In this paper we examine whether the introduction of digital subscriber line (DSL) broadband services increased firms' productivity in nine sub-sectors within the services and distribution sector in Ireland from 2006 to 2012. Firm-level panel data on firms' characteristics are linked to spatial information on the rollout of DSL. While we do not find significant productivity effects in the services sectors taken together, we do find positive and significant effects on firm's total factor productivity in Information & Communication and Administrative & Support Services.

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  • Haller, Stefanie A. & Lyons, Sean, 2019. "Effects of broadband availability on total factor productivity in service sector firms: Evidence from Ireland," Telecommunications Policy, Elsevier, vol. 43(1), pages 11-22.
    • Handle: RePEc:eee:telpol:v:43:y:2019:i:1:p:11-22
    DOI: 10.1016/j.telpol.2018.09.005
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    Cited by:

    1. Juan Jung & Gonzalo Gómez-Bengoechea, 2022. "A literature review on firm digitalization: drivers and impacts," Studies on the Spanish Economy eee2022-20, FEDEA.
    2. Stockinger, Bastian, 2019. "Broadband internet availability and establishments' employment growth in Germany : evidence from instrumental variables estimations," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages 1-7.
    3. Falk, Martin & Hagsten, Eva, 2021. "Impact of high-speed broadband access on local establishment dynamics," Telecommunications Policy, Elsevier, vol. 45(4).
    4. Bastian Stockinger, 2019. "Broadband internet availability and establishments’ employment growth in Germany: evidence from instrumental variables estimations," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-23, December.
    5. Stefan Apostol & Eduardo Hernández-Rodríguez, 2023. "Digitalisation in European regions: Unravelling the impact of relatedness and complexity on digital technology adoption and productivity growth," Papers in Evolutionary Economic Geography (PEEG) 2317, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2023.
    6. repec:iab:iabjlr:v:53:i:1:p:art.7 is not listed on IDEAS
    7. Stockinger, Bastian, 2019. "Broadband internet availability and establishments' employment growth in Germany : evidence from instrumental variables estimations," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages .7(1-23).
    8. Shane Greenstein, 2020. "Digital Infrastructure," NBER Chapters, in: Economic Analysis and Infrastructure Investment, pages 409-447, National Bureau of Economic Research, Inc.
    9. Tanja Broz & Goran Buturac & Miloš Parežanin, 2020. "Digital transformation and economic cooperation: The case of Western Balkan countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 697-722.

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