IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v41y2010i2p165-191.html
   My bibliography  Save this article

Infrastructure Investment and Rural Economic Development: An Evaluation of USDA's Broadband Loan Program

Author

Listed:
  • IVAN T. KANDILOV
  • MITCH RENKOW

Abstract

We empirically evaluate whether participation in the U.S. Department of Agriculture's Broadband Loan Program, which began making loans in 2002, has had measurable positive impacts on zip code-level economic outcomes. Using difference in differences and propensity score matching program evaluation techniques, we find that loans made in 2002 and 2003 under the Pilot Broadband Loan Program have had a substantial positive impact on employment, annual payroll, and the number of business establishments in recipient communities. However, a more spatially disaggregated analysis reveals that the positive economic impacts of the pilot program are driven primarily by the outcomes in communities located closest to urban areas. Finally, we find no evidence that loans received as part of the current Broadband Loan Program have had a measurable positive impact on recipient communities, possibly because not enough time has elapsed for the impacts of the current Broadband Loan Program to have emerged. Copyright (c) 2010 Copyright the Authors. Journal compilation (c) 2010 Wiley Periodicals, Inc..

Suggested Citation

  • Ivan T. Kandilov & Mitch Renkow, 2010. "Infrastructure Investment and Rural Economic Development: An Evaluation of USDA's Broadband Loan Program," Growth and Change, Wiley Blackwell, vol. 41(2), pages 165-191.
  • Handle: RePEc:bla:growch:v:41:y:2010:i:2:p:165-191
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2257.2010.00524.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven C. Deller & Melissa A. Deller, 2010. "Rural Crime and Social Capital," Growth and Change, Wiley Blackwell, vol. 41(2), pages 221-275.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    3. Chris Forman & Avi Goldfarb & Shane Greenstein, 2009. "The Internet and Local Wages: Convergence or Divergence?," NBER Working Papers 14750, National Bureau of Economic Research, Inc.
    4. Mark D. Partridge & Kamar Ali & M. Rose Olfert, 2010. "Rural-to-Urban Commuting: Three Degrees of Integration," Growth and Change, Wiley Blackwell, vol. 41(2), pages 303-335.
    5. Parker, Edwin B., 2000. "Closing the digital divide in rural America," Telecommunications Policy, Elsevier, vol. 24(4), pages 281-290, May.
    6. Wood, Lawrence E., 2008. "Rural broadband: The provider matters," Telecommunications Policy, Elsevier, vol. 32(5), pages 326-339, June.
    7. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    8. Stephan J. Goetz & Yicheol Han & Jill L. Findeis & Kathryn J. Brasier, 2010. "U.S. Commuting Networks and Economic Growth: Measurement and Implications for Spatial Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 276-302.
    9. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
    10. Jonathan Corcoran & Alessandra Faggian & Philip Mccann, 2010. "Human Capital in Remote and Rural Australia: The Role of Graduate Migration," Growth and Change, Wiley Blackwell, vol. 41(2), pages 192-220.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Kauf, Benedikt & Niebel, Thomas, 2016. "The economic impacts of telecommunications networks and broadband internet: A survey," ZEW Discussion Papers 16-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Jitsuzumi, Toshiya, 2015. "Means and ends toward the broadband society: Net neutrality and over-the-top players," 2015 Regional ITS Conference, Los Angeles 2015 146328, International Telecommunications Society (ITS).
    3. Brian E. Whitacre, 2011. "Do higher broadband adoption rates mean lower tax collections from local retail sales? Implications of e-commerce in rural areas of the US," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(2), pages 71-85, June.
    4. Jonathan Corcoran & Alessandra Faggian & Philip Mccann, 2010. "Human Capital in Remote and Rural Australia: The Role of Graduate Migration," Growth and Change, Wiley Blackwell, vol. 41(2), pages 192-220.
    5. repec:oup:ajagec:v:99:y:2017:i:1:p:1-18. is not listed on IDEAS
    6. Briglauer, Wolfgang, 2017. "Does State Aid For Broadband Deployment In Rural Areas Close The Digital And Economic Divide?," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168055, Verein für Socialpolitik / German Economic Association.
    7. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Giulia Canzian & Samuele Poy & Simone Schüller, 2015. "Broadband Diffusion and Firm Performance in Rural Areas: Quasi-Experimental Evidence," FBK-IRVAPP Working Papers 2015-10, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    9. Janeski, Ivica & Whitacre, Brian E., 2014. "Long-Term Economic Impacts of USDAWater and Sewer Infrastructure Investments in Oklahoma," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(01), February.
    10. M. Rose Olfert & Mark D. Partridge, 2010. "Best Practices in Twenty-First-Century Rural Development and Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 147-164.
    11. McCoy, Daire & Lyons, Sean & Morgenroth, Edgar & Palcic, Donal & Allen, Leonie, 2016. "The impact of broadband and other infrastructure on the location of new business establishments," 27th European Regional ITS Conference, Cambridge (UK) 2016 148688, International Telecommunications Society (ITS).
    12. Mack, Elizabeth A. & Rey, Sergio J., 2014. "An econometric approach for evaluating the linkages between broadband and knowledge intensive firms," Telecommunications Policy, Elsevier, vol. 38(1), pages 105-118.
    13. Kim, Younjun & Orazem, Peter, 2012. "Broadband Internet and Firm Entry: Evidence from Rural Iowa," Staff General Research Papers Archive 35696, Iowa State University, Department of Economics.
    14. Randall Jackson & Péter Járosi & Amir B. Ferreira Neto & Elham Erfanian, 2017. "Woody Biomass Processing and Rural Regional Development," Working Papers Working Paper 2017-01, Regional Research Institute, West Virginia University.
    15. repec:eee:soceps:v:58:y:2017:i:c:p:51-62 is not listed on IDEAS
    16. Brian Whitacre & Roberto Gallardo & Sharon Strover, 2014. "Does rural broadband impact jobs and income? Evidence from spatial and first-differenced regressions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 649-670, November.
    17. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2016. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," ZEW Discussion Papers 16-064, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    18. McCoy, Daire & Lyons, Sean & Morgenroth, Edgar & Palcic, Donal & Allen, Leonie, 2016. "The impact of local infrastructure on new business establishments," MPRA Paper 69074, University Library of Munich, Germany.
    19. Renkow, Mitch, 2011. "Residential Broadband Availability: Evidence from Kentucky and North Carolina," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), August.
    20. Bertschek Irene & Briglauer Wolfgang & Hüschelrath Kai & Kauf Benedikt & Niebel Thomas, 2015. "The Economic Impacts of Broadband Internet: A Survey," Review of Network Economics, De Gruyter, vol. 14(4), pages 201-227, December.
    21. Elizabeth A. Mack, 2015. "Variations in the Broadband-Business Connection across the Urban Hierarchy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 400-423, September.
    22. Mark D. Partridge & Kamar Ali & M. Rose Olfert, 2010. "Rural-to-Urban Commuting: Three Degrees of Integration," Growth and Change, Wiley Blackwell, vol. 41(2), pages 303-335.
    23. Stephan J. Goetz & Yicheol Han & Jill L. Findeis & Kathryn J. Brasier, 2010. "U.S. Commuting Networks and Economic Growth: Measurement and Implications for Spatial Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 276-302.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:41:y:2010:i:2:p:165-191. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.