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Different Countries, Different Outcomes: Multiplicative Effects Of Broadband Investments In Western Balkan Countries

Author

Listed:
  • Davor Mikulic

    (The Institute of Economics, Zagreb, Croatia)

  • Tajana Barbic

    (The Institute of Economics, Zagreb, Croatia)

Abstract

The paper aims to determine in what way different structures of economies may contribute to discrepancies in the short-term economic effects of broadband investments. The paper uses the input-output methodology to explore the multiplicative impact of broadband investments in six Western Balkan countries. The multiplicative effects of broadband investments on gross value added, employment, imports and tax revenues are calculated, which in turn can affect the investment propensity and condition appropriate policy responses. The results reveal significant economic benefits, including increased output, job creation, and government revenue, underscoring the importance of supportive government policies and regulatory frameworks.

Suggested Citation

  • Davor Mikulic & Tajana Barbic, 2025. "Different Countries, Different Outcomes: Multiplicative Effects Of Broadband Investments In Western Balkan Countries," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 34(1), pages 43-63, june.
    • Handle: RePEc:avo:emipdu:v:34:y:2025:i:1:p:43-63
    DOI: 10.17818/EMIP/2025/3
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    References listed on IDEAS

    as
    1. 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.
    2. Aldashev, Alisher & Batkeyev, Birzhan, 2021. "Broadband Infrastructure and Economic Growth in Rural Areas," Information Economics and Policy, Elsevier, vol. 57(C).
    3. Đorđe Mitrović, 2015. "Broadband Adoption, Digital Divide, And The Global Economic Competitiveness Of Western Balkan Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 60(207), pages 95-116, September.
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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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