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Does broadband speed really matter as a driver of economic growth? Investigating OECD countries

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  • Ibrahim Kholilul Rohman
  • Erik Bohlin

Abstract

This paper aims to measure the impact of broadband speed on economic growth in the OECD countries. All the variables used in this study were collected from OECD databases, except the speed data, which were gathered from Ookla, a company that provides broadband testing and web-based network diagnostic applications data on a daily basis. Quarterly balanced panel data for 33 OECD countries during the period 2008-2010 were examined. The study found that the estimated coefficient of broadband speed is statistically significant. The hypothetical result of this study shows that doubling the broadband speed will contribute 0.3% growth compared with the growth rate for the base year. The results convey that the impact of increasing broadband speed on GDP growth will largely depend on two aspects: 1) the size of the coefficient of the broadband speed (ß); 2) the existing economic growth in each country. Finally, the paper provides suggestions for future research in this vein and further calibration of future models.

Suggested Citation

  • Ibrahim Kholilul Rohman & Erik Bohlin, 2012. "Does broadband speed really matter as a driver of economic growth? Investigating OECD countries," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(4), pages 336-356.
    • Handle: RePEc:ids:ijmnec:v:2:y:2012:i:4:p:336-356
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    Citations

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    Cited by:

    1. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    2. repec:vuw:vuwscr:19206 is not listed on IDEAS
    3. Howell, Bronwyn, 2012. "Competition and Regulation Policy in Antipodean Government-Funded UltraFast Fibre Broadband Markets," Working Paper Series 4133, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    4. Aravantinos, Elias & Petre, Konstantin & Katsianis, Dimitris & Varoutas, Dimitris, 2021. "Determinants of FTTH tariffs evolution in EU: A panel data analysis," Telecommunications Policy, Elsevier, vol. 45(10).
    5. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    6. Kongaut, Chatchai & Bohlin, Erik, 2014. "Impact of broadband speed on economic outputs: An empirical study of OECD countries," 25th European Regional ITS Conference, Brussels 2014 101415, International Telecommunications Society (ITS).
    7. Martins, Maria Lurdes, 2023. "Cybersecurity provision and online services access and usage," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 278001, International Telecommunications Society (ITS).
    8. Ioannou, Nikos & Logothetis, Vangelis & Petre, Konstantin & Tselekounis, Markos & Chipouras, Aris & Katsianis, Dimitris & Varoutas, Dimitris, 2021. "Network modeling approaches for calculating wholesale NGA prices: A full comparison based on the Greek fixed broadband market," Telecommunications Policy, Elsevier, vol. 45(9).
    9. Teklemariam, Mekuria Haile & Kwon, Youngsun, 2020. "Differentiating mobile broadband policies across diffusion stages: A panel data analysis," Telecommunications Policy, Elsevier, vol. 44(8).
    10. Gerpott, Torsten J. & Ahmadi, Nima, 2015. "Advancement of indices assessing a nation׳s telecommunications development status: A PLS structural equation analysis of over 100 countries," Telecommunications Policy, Elsevier, vol. 39(2), pages 93-111.
    11. Edquist, Harald, 2022. "The economic impact of mobile broadband speed," Telecommunications Policy, Elsevier, vol. 46(5).
    12. Jung, Juan & López-Bazo, Enrique, 2020. "On the regional impact of broadband on productivity: The case of Brazil," Telecommunications Policy, Elsevier, vol. 44(1).
    13. Hasbi, Maude & Bohlin, Erik, 2021. "Impact of Broadband Quality on Median Income and Unemployment: Evidence from Sweden," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238026, International Telecommunications Society (ITS).
    14. Jung, Juan, 2014. "Regional inequalities in the impact of broadband on productivity: Evidence from Brazil," MPRA Paper 56177, University Library of Munich, Germany.
    15. Montenegro, Lourdes O. & Araral, Eduardo, 2020. "Can competition-enhancing regulation bridge the quality divide in Internet provision?," Telecommunications Policy, Elsevier, vol. 44(1).
    16. Lobo, Bento J. & Alam, Md Rafayet & Whitacre, Brian E., 2020. "Broadband speed and unemployment rates: Data and measurement issues," Telecommunications Policy, Elsevier, vol. 44(1).
    17. Lüdering, Jochen, 2016. "Low Latency Internet and Economic Growth: A Simultaneous Approach," 27th European Regional ITS Conference, Cambridge (UK) 2016 148687, International Telecommunications Society (ITS).
    18. Raúl Katz & Juan Jung, 2022. "The Role of Broadband Infrastructure in Building Economic Resiliency in the United States during the COVID-19 Pandemic," Mathematics, MDPI, vol. 10(16), pages 1-14, August.
    19. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    20. Prieger, James E., 2013. "The broadband digital divide and the economic benefits of mobile broadband for rural areas," Telecommunications Policy, Elsevier, vol. 37(6), pages 483-502.
    21. Vitor Miguel Ribeiro & Lei Bao, 2021. "Impact of next‐generation access networks on the innovation efficiency of Portuguese municipalities: A spatial econometrics approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1615-1637, October.
    22. Shakoor, Abdul & Ahmed, Roohi, 2024. "Exploring the Influence of Three Dimensions of Sustainable Development Goals on Economic Growth: An Evidence from Selected SAARC Countries," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 49(3), pages 149-175, September.
    23. Koutroumpis, Pantelis, 2019. "The economic impact of broadband: Evidence from OECD countries," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    24. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 21st century: Making the evidence stronger," Telecommunications Policy, Elsevier, vol. 44(2).
    25. repec:vuw:vuwscr:19242 is not listed on IDEAS

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