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The Impact of Broadband on Economic Activity in Rural Areas: Evidence from German Municipalities

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  • Nadine Fabritz

Abstract

This paper investigates the impact of broadband availability on economic activity as measured by local employment rates. Using panel data on broadband coverage in 8,460 West German municipalities for the period from 2005 to 2009, we find, in fixed effects regressions, an overall positive, but economically rather limited, relationship between local employment and local broadband infrastructure. The effect is larger in rural municipalities and is likely to stem from the service sector.

Suggested Citation

  • Nadine Fabritz, 2013. "The Impact of Broadband on Economic Activity in Rural Areas: Evidence from German Municipalities," ifo Working Paper Series 166, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_166
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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