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Market Access and Information Technology Adoption: Historical Evidence from the Telephone in Bavaria

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  • Florian Ploeckl

Abstract

Information technology, like the telephone, influences market access; this paper answers the question about a reverse effect, does market access affect information technology, in particular its adoption?� Using the introduction of the telephone in Bavaria, I demonstrate with a rank, order and stock effects diffusion model how market access affects the diffusion of local telephone exchanges over towns as well as the rate of adoption of telelphone lines within towns.� The results of a duration analysis show that market access speeds up the diffusion, a spatial correlation specification demonstrates that this is not just a geographic effect.� The rate of adoption within towns is also affected by the adoption of lines in other towns, the results indicate that about 4% of all lines are due to the ability to call outside your local exchange network.� Market access is therefore shown to impact the adoption of technology.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 620.

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Date of creation: 03 Sep 2012
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Handle: RePEc:oxf:wpaper:620

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Keywords: Information technology adoption; Market access; Spatial diffusion; Bavaria; Telephone;

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  1. Stephen Redding & Daniel M. Sturm, 2005. "The Costs of Remoteness: Evidence from German Division and Reunification," CEP Discussion Papers dp0688, Centre for Economic Performance, LSE.
  2. Florian Ploeckl, 2010. "Borders, market access and urban growth; the case of Saxon towns and the Zollverein," Working Papers 2010/42, Institut d'Economia de Barcelona (IEB).
  3. Danielle Galliano & Pascale Roux, 2008. "Organisational motives and spatial effects in Internet adoption and intensity of use: evidence from French industrial firms," The Annals of Regional Science, Springer, vol. 42(2), pages 425-448, June.
  4. Wallsten, Scott, 2005. "Returning to Victorian Competition, Ownership, and Regulation: An Empirical Study of European Telecommunications at the Turn of the Twentieth Century," The Journal of Economic History, Cambridge University Press, vol. 65(03), pages 693-722, September.
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Cited by:
  1. Ploeckl, Florian, 2012. "Endowments and market access; the size of towns in historical perspective: Saxony, 1550–1834," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 607-618.

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  1. Historical Economic Geography

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