The need for speed: impacts of internet connectivity on firm productivity
Fast internet access is widely considered to be a productivity-enhancing factor. Internet access speeds vary regionally within countries and even within cities. Despite articulate pleas for network upgrades to accelerate internet access, there is little rigorous research quantifying benefits to individual firms that arise from upgraded internet connectivity. We use a large New Zealand micro-survey of firms linked to unit record firm financial data to determine the impact that differing types of internet access have on firm productivity. Propensity score matching is used to control for factors, including the firm’s (lagged) productivity, that determine firms’ internet access choices. Having matched firms, we examine the productivity impacts that arise when a firm adopts different types (speeds) of internet connectivity. Broadband adoption is found to boost productivity but we find no productivity differences across broadband type. The results provide the first firm-level estimates internationally of the degree of productivity gains sourced from upgraded internet access.
(This abstract was borrowed from another version of this item.)
Volume (Year): 37 (2012)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/microeconomics/journal/11123/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Forman, Chris & Goldfarb, Avi & Greenstein, Shane, 2005. "How did location affect adoption of the commercial Internet? Global village vs. urban leadership," Journal of Urban Economics, Elsevier, vol. 58(3), pages 389-420, November.
- Mika Maliranta & Petri Rouvinen, 2006.
"Informational mobility and productivity: Finnish evidence,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 15(6), pages 605-616.
- Maliranta, Mika & Rouvinen, Petri, 2004. "Informational Mobility and Productivity - Finnish Evidence," Discussion Papers 919, The Research Institute of the Finnish Economy.
- Nick Bloom & John Van Reenen, 2006.
"Measuring and Explaining Management Practices Across Firms and Countries,"
NBER Working Papers
12216, National Bureau of Economic Research, Inc.
- Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1351-1408.
- Bloom, Nicholas & Van Reenen, John, 2006. "Measuring and Explaining Management Practices Across Firms and Countries," CEPR Discussion Papers 5581, C.E.P.R. Discussion Papers.
- Nick Bloom & John Van Reenen, 2006. "Measuring and explaining management practices across firms and countries," LSE Research Online Documents on Economics 733, London School of Economics and Political Science, LSE Library.
- Nick Bloom & John Van Reenen, 2006. "Measuring and Explaining Management Practices Across Firms and Countries," CEP Discussion Papers dp0716, Centre for Economic Performance, LSE.
- 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.
- Jess Gaspar & Edward Glaeser, 1996. "Information Technology and the Future of Cities," NBER Working Papers 5562, National Bureau of Economic Research, Inc.
- Jess Gaspar & Edward L. Glaeser, 1996. "Information Technology and the Future of Cities," Harvard Institute of Economic Research Working Papers 1756, Harvard - Institute of Economic Research.
- Thomas N. Hubbard, 2000. "The Demand for Monitoring Technologies: The Case of Trucking," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 533-560.
- Marion Debruyne & David J. Reibstein, 2005. "Competitor See, Competitor Do: Incumbent Entry in New Market Niches," Marketing Science, INFORMS, vol. 24(1), pages 55-66, December.
- Joshua Angrist & Jinyong Hahn, 2004. "When to Control for Covariates? Panel Asymptotics for Estimates of Treatment Effects," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 58-72, February.
- B. K. Atrostic & Sang V. Nguyen, 2005. "It and Productivity in U.S. Manufacturing: Do Computer Networks Matter?," Economic Inquiry, Western Economic Association International, vol. 43(3), pages 493-506, July.
- Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
- Marco Caliendo & Sabine Kopeinig, 2005.
"Some Practical Guidance for the Implementation of Propensity Score Matching,"
Discussion Papers of DIW Berlin
485, DIW Berlin, German Institute for Economic Research.
- Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
- Caliendo, Marco & Kopeinig, Sabine, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," IZA Discussion Papers 1588, Institute for the Study of Labor (IZA).
- Arthur Grimes & Cleo Ren & Philip Stevens, 2012.
"The need for speed: impacts of internet connectivity on firm productivity,"
Journal of Productivity Analysis,
Springer, vol. 37(2), pages 187-201, April.
- Arthur Grimes & Cleo Ren & Philip Stevens, 2009. "The Need for Speed: Impacts of Internet Connectivity on Firm Productivity," Working Papers 09_15, Motu Economic and Public Policy Research.
- Fabling, Richard & Grimes, Arthur & Stevens, Philip, 2008. "A Comparison of Qualitative and Quantitative Firm Performance Measures," Occasional Papers 08/4, Ministry of Economic Development, New Zealand.
- Goldfarb, Avi, 2006. "The (teaching) role of universities in the diffusion of the Internet," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 203-225, March.
- Chris Forman & Avi Goldfarb & Shane Greenstein, 2009. "The Internet and Local Wages: Convergence or Divergence?," NBER Working Papers 14750, National Bureau of Economic Research, Inc.
- Chris Forman, 2005. "The Corporate Digital Divide: Determinants of Internet Adoption," Management Science, INFORMS, vol. 51(4), pages 641-654, April.
- 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.
When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:37:y:2012:i:2:p:187-201. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.