IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03697098.html
   My bibliography  Save this paper

When, where, and for what industries does broadband foster establishment births?

Author

Listed:
  • Chloé Duvivier

    (Territoires - Territoires - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UCA - Université Clermont Auvergne)

  • Emma Cazou
  • Stéphanie Truchet-Aznar

    (Territoires - Territoires - AgroParisTech - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UCA - Université Clermont Auvergne)

  • Cédric Brunelle
  • Jean Dubé

Abstract

We examine the effects of broadband on establishment births for five types of areas, six industries and two speed levels. Econometric results indicate that broadband has an overall positive effect in larger, medium and small urban centres and in periurban areas but has little or no impact in rural areas. However, industry-level analyses show that broadband can foster establishment births in rural areas in some industries, including selected knowledge-intensive industries. Finally, there are no great differences between the impacts of basic and fast broadband, except in larger urban centres with a higher skilled workforce able to use sophisticated applications.

Suggested Citation

  • Chloé Duvivier & Emma Cazou & Stéphanie Truchet-Aznar & Cédric Brunelle & Jean Dubé, 2021. "When, where, and for what industries does broadband foster establishment births?," Post-Print hal-03697098, HAL.
  • Handle: RePEc:hal:journl:hal-03697098
    DOI: 10.1111/pirs.12626
    Note: View the original document on HAL open archive server: https://hal.science/hal-03697098
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03697098/document
    Download Restriction: no

    File URL: https://libkey.io/10.1111/pirs.12626?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daire McCoy & Sean Lyons & Edgar Morgenroth & Donal Palcic & Leonie Allen, 2018. "The impact of broadband and other infrastructure on the location of new business establishments," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 509-534, June.
    2. Paul Freathy & Eric Calderwood, 2016. "Coping with Change: The Implications of e-Commerce Adoption for Island Consumers," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 894-908, May.
    3. Büchel, Konstantin & Ehrlich, Maximilian v., 2020. "Cities and the structure of social interactions: Evidence from mobile phone data," Journal of Urban Economics, Elsevier, vol. 119(C).
    4. Manlove, Jacob & Whitacre, Brian, 2019. "Understanding the trend to mobile-only internet connections:A decomposition analysis," Telecommunications Policy, Elsevier, vol. 43(1), pages 76-87.
    5. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2013. "The Economic Performance of European Cities and City Regions: Myths and Realities," European Planning Studies, Taylor & Francis Journals, vol. 21(3), pages 334-354, March.
    6. Anders Akerman & Ingvil Gaarder & Magne Mogstad, 2015. "The Skill Complementarity of Broadband Internet," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1781-1824.
    7. repec:rre:publsh:v:40:y:2010:i:1:p:5-26 is not listed on IDEAS
    8. Mack, Elizabeth A. & Wentz, Elizabeth, 2017. "Industry variations in the broadband business nexus," Socio-Economic Planning Sciences, Elsevier, vol. 58(C), pages 51-62.
    9. N. A. Phelps & R. J. Fallon & C. L. Williams, 2001. "Small Firms, Borrowed Size and the Urban-Rural Shift," Regional Studies, Taylor & Francis Journals, vol. 35(7), pages 613-624.
    10. Ivan T. Kandilov & Mitch Renkow, 2010. "Infrastructure Investment and Rural Economic Development: An Evaluation of USDA's Broadband Loan Program," Growth and Change, Wiley Blackwell, vol. 41(2), pages 165-191, June.
    11. Lambert, Dayton M. & Brown, Jason P. & Florax, Raymond J.G.M., 2010. "A two-step estimator for a spatial lag model of counts: Theory, small sample performance and an application," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 241-252, July.
    12. Kelsey L. Conley & Brian E. Whitacre, 2016. "Does Broadband Matter for Rural Entrepreneurs and Creative Class Employees?," The Review of Regional Studies, Southern Regional Science Association, vol. 46(2), pages 171-190, Summer.
    13. Elizabeth A. Mack & Luc Anselin & Tony H. Grubesic, 2011. "The importance of broadband provision to knowledge intensive firm location," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(1), pages 17-35, March.
    14. Evert Meijers & Martijn Burger & Evert J. Meijers & Martijn J. Burger & Marloes M. Hoogerbrugge, 2016. "Borrowing size in networks of cities: City size, network connectivity and metropolitan functions in Europe," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 181-198, March.
    15. repec:oup:ajagec:v:99:y:2017:i:1:p:1-18. is not listed on IDEAS
    16. Lofstrom, Magnus & Bates, Timothy & Parker, Simon C., 2014. "Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers," Journal of Business Venturing, Elsevier, vol. 29(2), pages 232-251.
    17. Roberto Camagni & Roberta Capello, 2005. "ICTs and territorial competitiveness in the era of internet," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 421-438, September.
    18. Stefanie Haller & Iulia Siedschlag, 2011. "Determinants of ICT adoption: evidence from firm-level data," Applied Economics, Taylor & Francis Journals, vol. 43(26), pages 3775-3788.
    19. Lucia Dalla Pellegrina & Serena Frazzoni & Zeno Rotondi & Andrea Vezzulli, 2017. "Does ICT adoption improve access to credit for small enterprises?," Small Business Economics, Springer, vol. 48(3), pages 657-679, March.
    20. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    21. Duco de Vos & Urban Lindgren & Maarten van Ham & Evert Meijers, 2020. "Does broadband internet allow cities to ‘borrow size’? Evidence from the Swedish labour market," Regional Studies, Taylor & Francis Journals, vol. 54(9), pages 1175-1186, September.
    22. Oliveira, Rodrigo & Moura, Klebson & Viana, Jorge & Tigre, Robson & Sampaio, Breno, 2015. "Commute duration and health: Empirical evidence from Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 62-75.
    23. Elizabeth A. Mack, 2014. "Broadband and knowledge intensive firm clusters: Essential link or auxiliary connection?," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 3-29, March.
    24. Jitendra Parajuli & Kingsley E. Haynes, 2017. "Revisiting broadband and new firm dynamics," Chapters, in: Charlie Karlsson & Martin Andersson & Lina Bjerke (ed.), Geographies of Growth, chapter 7, pages 165-201, Edward Elgar Publishing.
    25. Bertschek Irene & Briglauer Wolfgang & Hüschelrath Kai & Kauf Benedikt & Niebel Thomas, 2015. "The Economic Impacts of Broadband Internet: A Survey," Review of Network Economics, De Gruyter, vol. 14(4), pages 201-227, December.
    26. Nicoletti, Giuseppe & von Rueden, Christina & Andrews, Dan, 2020. "Digital technology diffusion: A matter of capabilities, incentives or both?," European Economic Review, Elsevier, vol. 128(C).
    27. Elizabeth A. Mack, 2015. "Variations in the Broadband-Business Connection across the Urban Hierarchy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 400-423, September.
    28. Timothy M. Komarek, 2018. "Crime and natural resource booms: evidence from unconventional natural gas production," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 113-137, July.
    29. Kolko, Jed, 2012. "Broadband and local growth," Journal of Urban Economics, Elsevier, vol. 71(1), pages 100-113.
    30. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    31. Charlie Karlsson & Martin Andersson & Lina Bjerke (ed.), 2017. "Geographies of Growth," Books, Edward Elgar Publishing, number 16680.
    32. Dan S. Rickman & Hongbo Wang, 2020. "Whither the American west economy? Natural amenities, mineral resources and nonmetropolitan county growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 673-701, December.
    33. DeStefano, Timothy & Kneller, Richard & Timmis, Jonathan, 2018. "Broadband infrastructure, ICT use and firm performance: Evidence for UK firms," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 110-139.
    34. Beyers, William B. & Lindahl, David P., 1996. "Lone Eagles and High Fliers in Rural Producer Services," Rural America/ Rural Development Perspectives, United States Department of Agriculture, Economic Research Service, vol. 11(3), June.
    35. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    36. Chloé Duvivier & Mario Polèse, 2018. "The great urban techno shift: Are central neighbourhoods the next silicon valleys? Evidence from three Canadian metropolitan areas," Papers in Regional Science, Wiley Blackwell, vol. 97(4), pages 1083-1111, November.
    37. Canzian, Giulia & Poy, Samuele & Schüller, Simone, 2019. "Broadband upgrade and firm performance in rural areas: Quasi-experimental evidence," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 87-103.
    38. 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.
    39. Douglas Cumming & Sofia Johan, 2010. "The Differential Impact of the Internet on Spurring Regional Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(5), pages 857-884, September.
    40. Steven Deller & Brian Whitacre, 2019. "Broadband's relationship to rural housing values," Papers in Regional Science, Wiley Blackwell, vol. 98(5), pages 2135-2156, October.
    41. David A. McGranahan & Timothy R. Wojan & Dayton M. Lambert, 2011. "The rural growth trifecta: outdoor amenities, creative class and entrepreneurial context -super-§," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 529-557, May.
    42. David Audretsch & Diana Heger & Tobias Veith, 2015. "Infrastructure and entrepreneurship," Small Business Economics, Springer, vol. 44(2), pages 219-230, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Steven Deller & Brian Whitacre & Tessa Conroy, 2022. "Rural broadband speeds and business startup rates," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 999-1025, May.
    3. Gary A. Wagner & Hyun Ji Lee, 2024. "Does broadband affect local economic outcomes less than we thought? Micro evidence from Louisiana," Contemporary Economic Policy, Western Economic Association International, vol. 42(1), pages 68-93, January.
    4. Schmidt, Claudia & Han, Luyi & Khaleghi Moghadam, Arian & Goetz, Stephan J., 2023. "Impact of Broadband Adoption on Agritourism Operations in the United States," 2023 Annual Meeting, July 23-25, Washington D.C. 335731, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chloé Duvivier & Claire Bussière, 2022. "The contingent nature of broadband as an engine for business startups in rural areas," Journal of Regional Science, Wiley Blackwell, vol. 62(5), pages 1329-1357, November.
    2. Steven Deller & Brian Whitacre & Tessa Conroy, 2022. "Rural broadband speeds and business startup rates," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 999-1025, May.
    3. Falk, Martin & Hagsten, Eva, 2021. "Impact of high-speed broadband access on local establishment dynamics," Telecommunications Policy, Elsevier, vol. 45(4).
    4. 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.
    5. Thonipara, Anita & Sternberg, Rolf G. & Proeger, Till & Haefner, Lukas, 2020. "Assessing the Digital Divide and its Regional Determinants: Evidence from a Web-Scraping Analysis," ifh Working Papers 25/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2020.
    6. McCoy, Daire & Lyons, Sean & Morgenroth, Edgar & Palcic, Donal & Allen, Leonie, 2016. "The impact of local infrastructure on new business establishments," MPRA Paper 69074, University Library of Munich, Germany.
    7. Philip Chen & Edward J Oughton & Pete Tyler & Mo Jia & Jakub Zagdanski, 2020. "Evaluating the impact of next generation broadband on local business creation," Papers 2010.14113, arXiv.org.
    8. Daire McCoy & Sean Lyons & Edgar Morgenroth & Donal Palcic & Leonie Allen, 2018. "The impact of broadband and other infrastructure on the location of new business establishments," Journal of Regional Science, Wiley Blackwell, vol. 58(3), pages 509-534, June.
    9. Anita Thonipara & Rolf Sternberg & Till Proeger & Lukas Haefner, 2023. "Digital divide, craft firms’ websites and urban-rural disparities—empirical evidence from a web-scraping approach [Digital Divide, Websites von Handwerksunternehmen und städtisch-ländliche Disparit," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(1), pages 69-99, April.
    10. Mack, Elizabeth A. & Wentz, Elizabeth, 2017. "Industry variations in the broadband business nexus," Socio-Economic Planning Sciences, Elsevier, vol. 58(C), pages 51-62.
    11. Calvin Jones & Dylan Henderson, 2019. "Broadband and uneven spatial development: The case of Cardiff City-Region," Local Economy, London South Bank University, vol. 34(3), pages 228-247, May.
    12. Niu, Geng & Jin, XiaoShu & Wang, Qi & Zhou, Yang, 2022. "Broadband infrastructure and digital financial inclusion in rural China," China Economic Review, Elsevier, vol. 76(C).
    13. 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).
    14. Timothy DeStefano & Richard Kneller & Jonathan Timmis, 2023. "The (fuzzy) digital divide: the effect of universal broadband on firm performance," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 139-177.
    15. Mossberger, Karen & LaCombe, Scott & Tolbert, Caroline J., 2022. "A new measure of digital economic activity and its impact on local opportunity," Telecommunications Policy, Elsevier, vol. 46(1).
    16. Cambini, Carlo & Grinza, Elena & Sabatino, Lorien, 2023. "Ultra-fast broadband access and productivity: Evidence from Italian firms," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    17. Luo, Qi & Hu, Haoyu & Feng, Dawei & He, Xiaogang, 2022. "How does broadband infrastructure promote entrepreneurship in China: Evidence from a quasi-natural experiment," Telecommunications Policy, Elsevier, vol. 46(10).
    18. Brian Whitacre & Roberto Gallardo & Sharon Strover, 2014. "Does rural broadband impact jobs and income? Evidence from spatial and first-differenced regressions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 649-670, November.
    19. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    20. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2021. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," International Journal of Industrial Organization, Elsevier, vol. 74(C).

    More about this item

    Keywords

    Broadband; Establishment births; Urban gradient;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03697098. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.