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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 raised 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.
Item Type: | Journal article |
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Faculties: | Munich School of Management > Institute for Strategy, Technology and Organization Economics Economics > Chairs > CESifo-Professorship for Empirical Innovation Economics |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
Item ID: | 20033 |
Date Deposited: | 15. Apr 2014, 08:55 |
Last Modified: | 31. Aug 2023, 12:58 |
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Broadband infrastructure and economic growth. (deposited 15. Apr 2014, 08:55)
- Broadband Infrastructure and Economic Growth. (deposited 15. Apr 2014, 08:55) [Currently Displayed]