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Impact of high-speed broadband access on local establishment dynamics

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  • Falk, Martin
  • Hagsten, Eva

Abstract

The aim of this study is to examine the relationship between high-speed fibre broadband access and establishment dynamics at the municipality level. Special emphasis is placed on micro as well as on small and medium-sized establishments in contracting areas. Data cover information on 290 municipalities in Sweden for the period 2010–2018. Results of Fixed Effects and Spatial Durbin model estimations reveal a significant but rather small direct effect of lagged high-speed broadband access, driven by the micro establishments. However, when the proportion of establishments with high-speed broadband access is combined with the local presence of university educated employees and researchers, a stronger indirect relationship appears. There is also some evidence that the broadband availability in neighbouring municipalities has a spillover effect. A high degree of heterogeneity is found in the results, where the relationship is far weaker in contracting municipalities and in those with a low-skilled workforce.

Suggested Citation

  • Falk, Martin & Hagsten, Eva, 2021. "Impact of high-speed broadband access on local establishment dynamics," Telecommunications Policy, Elsevier, vol. 45(4).
    • Handle: RePEc:eee:telpol:v:45:y:2021:i:4:s0308596121000094
    DOI: 10.1016/j.telpol.2021.102104
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    2. Yifeng Philip Chen & Edward J. Oughton & Jakub Zagdanski & Maggie Mo Jia & Peter Tyler, 2023. "Crowdsourced data indicates broadband has a positive impact on local business creation," Papers 2308.14734, arXiv.org.
    3. Chen, Yulong & Ma, Liyuan & Orazem, Peter F., 2023. "The heterogeneous role of broadband access on establishment entry and exit by sector and urban and rural markets," Telecommunications Policy, Elsevier, vol. 47(3).

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    More about this item

    Keywords

    High-speed broadband access; High-skilled employees; Municipalities; Sweden; Spatial econometric models;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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