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The Internet as a general-purpose technology: Firm-level evidence from around the world

Author

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  • Clarke, George R.G.
  • Qiang, Christine Zhenwei
  • Xu, Lixin Colin

Abstract

This paper uses firm-level data to assess whether telecom services are general-purpose technologies. We find that only Internet services are so: firm growth and productivity are substantially higher when Internet access is greater and when firms use the Internet more intensively; and it benefits firms of both high- and low-tech industries, firms of all sizes, and firms with and without exporting. Small firms benefit more from Internet than large firms do. In contrast, fixed-line and cellular services are not robustly related to firm performance.

Suggested Citation

  • Clarke, George R.G. & Qiang, Christine Zhenwei & Xu, Lixin Colin, 2015. "The Internet as a general-purpose technology: Firm-level evidence from around the world," Economics Letters, Elsevier, vol. 135(C), pages 24-27.
    • Handle: RePEc:eee:ecolet:v:135:y:2015:i:c:p:24-27
    DOI: 10.1016/j.econlet.2015.07.004
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    References listed on IDEAS

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    1. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    2. Lixin Colin Xu, 2011. "The Effects of Business Environments on Development: Surveying New Firm-level Evidence," The World Bank Research Observer, World Bank, vol. 26(2), pages 310-340, August.
    3. Hardy, Andrew P., 1980. "The role of the telephone in economic development," Telecommunications Policy, Elsevier, vol. 4(4), pages 278-286, December.
    4. Susanto Basu & John G. Fernald, 2008. "Information and communications technology as a general purpose technology: evidence from U.S. industry data," Economic Review, Federal Reserve Bank of San Francisco, pages 1-15.
    5. Tim Kelly & Carlo Maria Rossotto, 2012. "Broadband Strategies Handbook," World Bank Publications - Books, The World Bank Group, number 6009, December.
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    More about this item

    Keywords

    Internet; Broadband; General-purpose technology;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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