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Title:Broadband infrastructure and economic growth PDF Logo
Authors:Czernich, Nina
Falck, Oliver
Kretschmer, Tobias
Woessmann, Ludger
Issue Date:2009
Series/Report no.:CESifo working paper 2861
Abstract:We estimate the effect of broadband infrastructure, which enables high-speed internet, on economic growth in the panel of OECD countries in 1996-2007. Our instrumental-variable model derives its non-linear first stage from a logistic diffusion model where pre-existing voice-telephony and cable-TV networks predict maximum broadband penetration. We find that a 10 percentage-point increase in broadband penetration raises annual per-capita growth by 0.9-1.5 percentage points. Results are robust to country and year fixed effects and controlling for linear second-stage effects of our instruments. We verify that our instruments predict broadband penetration but not diffusion of contemporaneous technologies like mobile telephony and computers.
Subjects:broadband
high-speed internet
technology diffusion
economic growth
JEL:O47
L96
K23
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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