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Impact of very high-speed broadband on company creation and entrepreneurship: Empirical Evidence

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  • Hasbi, Maude

Abstract

This paper analyzes to what extend the local presence of very high-speed broadband networks has a causal impact on the creation of new businesses and sole proprietorships. Estimations are performed using micro-level panel data covering almost 5000 municipalities in metropolitan France, from 2010 to 2015. A count modeling approach with time- and municipal-fixed effects is first developed. It shows heterogeneous effects across sectors. Municipalities with a very high-speed broadband network tend to be more attractive for companies, with a positive effect on establishment creation within the tertiary sector and the construction sector. In addition, these municipalities seem to provide a more favorable environment for entrepreneurship. However, the benefits of very high-speed broadband are not equally distributed across municipalities and depend on the educational attainment of the population.

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  • Hasbi, Maude, 2020. "Impact of very high-speed broadband on company creation and entrepreneurship: Empirical Evidence," Telecommunications Policy, Elsevier, vol. 44(3).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:3:s0308596119302174
    DOI: 10.1016/j.telpol.2019.101873
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    More about this item

    Keywords

    Fiber; Very high-speed broadband; Local economic growth; Company creation;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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