Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries

15 Pages Posted: 25 Oct 2012

See all articles by Syed Muhammad Atif

Syed Muhammad Atif

The University of Sydney - School of Economics

James Endres

affiliation not provided to SSRN

James Macdonald

affiliation not provided to SSRN

Date Written: June 30, 2012

Abstract

Broadband infrastructure facilitates the generation and distribution of decentralized 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.

Keywords: endogenous growth theory, OECD, broadband

JEL Classification: O11, O33, C32

Suggested Citation

Atif, Syed Muhammad and Endres, James and Macdonald, James, Broadband Infrastructure and Economic Growth: A Panel Data Analysis of OECD Countries (June 30, 2012). Available at SSRN: https://ssrn.com/abstract=2166167 or http://dx.doi.org/10.2139/ssrn.2166167

Syed Muhammad Atif (Contact Author)

The University of Sydney - School of Economics ( email )

Rm 370 Merewether (H04)
The University of Sydney
Sydney, NSW 2006 2008
Australia
+61-423-813-257 (Phone)

James Endres

affiliation not provided to SSRN ( email )

James Macdonald

affiliation not provided to SSRN ( email )

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