Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries
Broadband infrastructure facilitates the generation and distribution of decentralised information and ideas in a knowledge economy comprising of markets that rely on information as an input. This paper analyses the effect of broadband penetration on output per capita by estimating a static fixed effects model and a basic linear dynamic model using an annual panel of 31 OECD countries over a period from 1998 to 2010. The results suggest that broadband penetration has had a positive impact on economic growth, and a 10 percent increase in the growth of broadband penetration will raise economic growth per employee by approximately 0.035 percentage points. The conclusion adds further weight to calls for Governments to adopt policies that accelerate broadband penetration and promote investment in broadband infrastructure.
|Date of creation:||30 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Czernich, Nina & Falck, Oliver & Kretschmer, Tobias & Wößmann, Ludger, 2011.
"Broadband Infrastructure and Economic Growth,"
Munich Reprints in Economics
20033, University of Munich, Department of Economics.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- S. K. Majumdar & O. Carare & H. Chang, 2010. "Broadband adoption and firm productivity: evaluating the benefits of general purpose technology," Industrial and Corporate Change, Oxford University Press, vol. 19(3), pages 641-674, June.
- 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.
- Andreea Halunga & Chris D. Orme & Takashi Yamagata, 2011. "A Heteroskedasticity Robust Breusch-Pagan Test for Contemporaneous Correlation in Dynamic Panel Data Models," The School of Economics Discussion Paper Series 1118, Economics, The University of Manchester.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42177. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.