Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30590
Authors: 
Czernich, Nina
Falck, Oliver
Kretschmer, Tobias
Woessmann, Ludger
Year of Publication: 
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

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