The economic impact of broadband on growth: A simultaneous approach

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.