Atif, Syed Muhammad and Endres, James and Macdonald, James (2012): Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries.
Download (854kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries|
|Keywords:||OECD; Broadband; Endogenous Growth Theory|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes
|Depositing User:||Syed Muhammad Atif|
|Date Deposited:||25. Oct 2012 08:57|
|Last Modified:||22. May 2015 17:42|
Allen Consulting Group (2002). “Built for Business II: Beyond Basic Connectivity, The Internet and Australian Business”. Sydney
Australian Industry Group (2008). “National CEO Survey ─ High Speed to Broadband: Measuring industry demand for a world class service”. Australia
Collins P, Day D, Williams C (2007). “The economic effects of broadband: An Australian perspective”. Research Statistics and Technology Branch, Department of Communications, Information Technology and the Arts, Canberra.
Crandall. R., Lehr. W. and Litan. R., (2007). “The Effects of Broadband Deployment on Output and Employment, A Cross-sectional Analysis of U.S. Data”. Issues in Economic Policy, (6), The Brookings Institute, Washington D.C.
Czernich N, Falck O, Kretschmer T, Woessmann L (2011). "Broadband Infrastructure and Economic Growth”. The Economic Journal 121(May): 505-532.
Grimes A, Ren C, Stevens P (2011). “The need for speed: impacts of internet connectivity on firm productivity”. Motu Economic and Public Policy Research.
Lehr W, Osorio C, Gillet S, Sirbu M, (2006). “Measuring broadband's economic impacts”. Presented at the 33rd research confderence on communications, information and internet policy (TPRC). Arlington Virginia September 23-25, 2005.
Andreea Halunga, Chris D. Orme, Takashi Yamagata, (2011). "A Heteroskedasticity Robust Breusch-Pagan Test for Contemporaneous Correlation in Dynamic Panel Data Models." University of Manchester Economics Discussion Paper Series 2011, Working Paper No. EDP-1118
Holt Lynne W. and Jamison Mark A (2009). “Broadband and Contributions to Economic Growth: Lessons from the U.S. Experience.” Telecommunications Policy, Vol. 33, No. 10-11, pp. 575-581.
Kathuria R, Uppal M, and Mamta (2009). “An Econometric analysis of the impact of mobile”, Vodafone Public Policy Series, Number 9, January 2009, United Kingdom.
Majumdar, S. K., Carare O, and Chang H, (2010). “Broadband Adoption and Firm Productivity: Evaluating the Benefits of General Purpose Technology”. Industrial and Corporate Change, Vol. 19, Issue 3, pp. 641-674, 2010.
OECD (2008). “Broadband and the Economy, Ministerial Background Report” DSTI/ICCP/IE(2007)3/FINAL, Paris Pp.5-6
OECD (2011). “Communications Outlook 2011”. Paris.
OECD (2009). “Tertiary level educational attainment for age group 25-64”. Paris
OVUM (2005). “The Impact of the US Wireless Telecom Industry on the US Economy: A study for CTIA-The Wireless Association”. Boston.
Romer, P. M. (1990). “Endogenous technological change.” Journal of Political Economy vol 98, pp71-102.
Qiang & Rossotto (2009). “Economic Impacts of Broadband”, in The World Bank (2009). Information and Communications for Development 2009: Extending Reach and Increasing Impact. Washington, DC: The World Bank.
The World Bank (2012). “World Development Indicators”. Washington DC.