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Broadband and local growth


  • Kolko, Jed


I find a positive relationship between broadband expansion and local economic growth. This relationship is stronger in industries that rely more on information technology and in areas with lower population densities. Instrumenting for broadband expansion with slope of terrain leans in the direction of a causal relationship, though not definitively.

Suggested Citation

  • Kolko, Jed, 2012. "Broadband and local growth," Journal of Urban Economics, Elsevier, vol. 71(1), pages 100-113.
  • Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:100-113 DOI: 10.1016/j.jue.2011.07.004

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    References listed on IDEAS

    1. David Shideler & Narine Badasyan & Laura Taylor, 2007. "The economic impact of broadband deployment in Kentucky," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Nov, pages 88-118.
    2. Kolko, Jed, 2010. "A new measure of US residential broadband availability," Telecommunications Policy, Elsevier, vol. 34(3), pages 132-143, April.
    3. Albert Saiz, 2010. "The Geographic Determinants of Housing Supply," The Quarterly Journal of Economics, Oxford University Press, vol. 125(3), pages 1253-1296.
    4. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January.
    5. Donald N. Steinnes, 1982. "Do 'People Follow Jobs' or do 'Jobs Follow People'? A Causality Issue in Urban Economics," Urban Studies, Urban Studies Journal Limited, vol. 19(2), pages 187-192, May.
    6. Shane Greenstein & Ryan C. McDevitt, 2009. "The Broadband Bonus: Accounting for Broadband Internet's Impact on U.S. GDP," NBER Working Papers 14758, National Bureau of Economic Research, Inc.
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    8. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    9. Grubesic, Tony H., 2006. "A spatial taxonomy of broadband regions in the United States," Information Economics and Policy, Elsevier, vol. 18(4), pages 423-448, November.
    10. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
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    11. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    12. Tony H. Grubesic & Alan T. Murray, 2004. "Waiting for Broadband: Local Competition and the Spatial Distribution of Advanced Telecommunication Services in the United States," Growth and Change, Wiley Blackwell, vol. 35(2), pages 139-165.
    13. Michael Greenstone & Enrico Moretti, 2003. "Bidding for Industrial Plants: Does Winning a 'Million Dollar Plant' Increase Welfare?," NBER Working Papers 9844, National Bureau of Economic Research, Inc.
    14. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
    15. Boarnet Marlon G., 1994. "The Monocentric Model and Employment Location," Journal of Urban Economics, Elsevier, vol. 36(1), pages 79-97, July.
    16. Stenberg, Peter L. & Morehart, Mitchell J. & Vogel, Stephen J. & Cromartie, John & Breneman, Vincent E. & Brown, Dennis M., 2009. "Broadband Internet's Value for Rural America," Economic Research Report 55944, United States Department of Agriculture, Economic Research Service.
    17. Steinnes, Donald N., 1977. "Causality and intraurban location," Journal of Urban Economics, Elsevier, vol. 4(1), pages 69-79, January.
    18. Glaeser Edward L, 2005. "Should the Government Rebuild New Orleans, Or Just Give Residents Checks?," The Economists' Voice, De Gruyter, vol. 2(4), pages 1-7, September.
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    20. Jed Kolko, 2010. "Urbanization, Agglomeration, and Coagglomeration of Service Industries," NBER Chapters,in: Agglomeration Economics, pages 151-180 National Bureau of Economic Research, Inc.
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    More about this item


    Internet; Broadband; Local economic development; Employment growth;

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location


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