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Broadband adoption and firm productivity: Evidence from Irish manufacturing firms

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  • Haller, Stefanie A.
  • Lyons, Seán

Abstract

We estimate the effects of adopting DSL broadband on firm productivity and productivity growth allowing for differing broadband speeds. We use a two-stage least squares estimator with geographical broadband availability as an instrument to address some potential endogeneity problems in a panel of Irish manufacturing firms. While more productive firms are on average more likely to be using DSL broadband, we find no statistically significant effect of broadband adoption on firms׳ productivity or productivity growth.

Suggested Citation

  • Haller, Stefanie A. & Lyons, Seán, 2015. "Broadband adoption and firm productivity: Evidence from Irish manufacturing firms," Telecommunications Policy, Elsevier, vol. 39(1), pages 1-13.
  • Handle: RePEc:eee:telpol:v:39:y:2015:i:1:p:1-13
    DOI: 10.1016/j.telpol.2014.10.003
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    References listed on IDEAS

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    1. Mirko Draca & Raffaella Sadun & John Van Reenen, 2006. "Productivity and ICT: A Review of the Evidence," CEP Discussion Papers dp0749, Centre for Economic Performance, LSE.
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    More about this item

    Keywords

    Broadband adoption; Firm productivity; IV regression; Industry;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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