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

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  • Atif, Syed Muhammad
  • Endres, James
  • Macdonald, James

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.

Suggested Citation

  • Atif, Syed Muhammad & Endres, James & Macdonald, James, 2012. "Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries," MPRA Paper 42177, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42177
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    References listed on IDEAS

    as
    1. Arthur Grimes & Cleo Ren & Philip Stevens, 2012. "The need for speed: impacts of internet connectivity on firm productivity," Journal of Productivity Analysis, Springer, vol. 37(2), pages 187-201, April.
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    3. S. K. Majumdar & O. Carare & H. Chang, 2010. "Broadband adoption and firm productivity: evaluating the benefits of general purpose technology," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(3), pages 641-674, June.
    4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    5. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
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    Cited by:

    1. Candelaria, José Alberto, 2015. "A panel data analysis of temporary and permanent effects of fixed broadband penetration over economic growth," 2015 Regional ITS Conference, Los Angeles 2015 146312, International Telecommunications Society (ITS).
    2. LoPiccalo, Katherine, 2022. "Impact of broadband penetration on U.S. Farm productivity: A panel approach," Telecommunications Policy, Elsevier, vol. 46(9).
    3. Bilal Mehmood & Haider Mahmood, 2014. "Broadband-Growth Relationship in Asian Perspective: A Revisit Using System Generalized Method of Moments (GMM) and Panel Fully Modified Ordinary Least Squares (Pfmols)," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(6), pages 229-237, June.
    4. Lorde, Troy & Jacob, Jadon & Weekes, Quinn, 2018. "Price-Setting Behavior in a Tourism Sharing Economy Accommodation Market: A Hedonic Price Analysis of AirBnB Hosts in the Caribbean," MPRA Paper 95475, University Library of Munich, Germany.
    5. Roberto Gallardo & Brian Whitacre & Indraneel Kumar & Sreedhar Upendram, 2021. "Broadband metrics and job productivity: a look at county-level data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(1), pages 161-184, February.
    6. Atif, Syed Muhammad & Srivastav, Mudit & Sauytbekova, Moldir & Arachchige, Udeni Kathri, 2012. "Globalization and Income Inequality: A Panel Data Analysis of 68 Countries," EconStor Preprints 65664, ZBW - Leibniz Information Centre for Economics.
    7. Jessica Van Parys & Zach Y. Brown, 2023. "Broadband Internet Access and Health Outcomes: Patient and Provider Responses in Medicare," NBER Working Papers 31579, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    OECD; Broadband; Endogenous Growth Theory;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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