The economic impact of broadband on growth: A simultaneous approach

  • Authors:
  • Pantelis Koutroumpis

  • Affiliations:
  • Imperial College Business School, UK

  • Venue:
  • Telecommunications Policy
  • Year:
  • 2009

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Abstract

This paper investigates how broadband penetration affects economic growth. A macroeconomic production function with a micro-model for broadband investment is used to estimate the impact of broadband infrastructure and growth. The results indicate a significant causal positive link especially when a critical mass of infrastructure is present. The scope of this research is 22 OECD countries based on data collected for the period 2002-2007.