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Title:More bits - more bucks? Measuring the impact of broadband internet on firm performance PDF Logo
Authors:Bertschek, Irene
Cerquera, Daniel
Klein, Gordon J.
Issue Date:2011
Series/Report no.:ZEW Discussion Papers 11-032
Abstract:The paper provides empirical evidence for the causal impact of broadband Internet on the economic performance of German firms. Performance is measured in terms of labour productivity and realised process and product innovations. The analysis refers to the early phase of DSL expansion in Germany from 2001 to 2003, when roughly 60 percent of the German firms already used broadband Internet. Identification relies on instrumental variable estimation taking advantage of information on the availability of DSL broadband at the postal code level. The results show that broadband Internet has no impact on firms' labour productivity whereas it exhibits a positive and significant impact on their innovation activity.
Subjects:labour productivity
innovation
broadband Internet
JEL:D22
L23
O31
Persistent Identifier of the first edition:urn:nbn:de:bsz:180-madoc-31834
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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