On the regional impact of broadband on productivity: The case of Brazil |
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Affiliation: | 1. Department of Economic Analysis, Complutense University of Madrid, Campus de Somosaguas, 28223, Pozuelo de Alarcón, Spain;2. Centro de Estudios de Telecomunicaciones de América Latina. Rambla República de México 6125, 11400, Montevideo, Uruguay;3. AQR-IREA, University of Barcelona, Av. Diagonal 690, 08034, Barcelona, Spain |
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Abstract: | This paper analyses the incidence of broadband on regional productivity in Brazil, intending to find out if the economic impact is uniform across all territories of the country. The possibility of performing a regional approach to test the effect of broadband on productivity in an emerging country represents a novelty for the literature. Results suggest that the impact of broadband on productivity is positive although not uniform across regions. On the one hand, it seems to depend on connection quality and network effects. Faster download speed and critical-mass accounting for network externalities in the region enhance the economic impact of broadband. On the other hand, higher productivity gains are estimated for the less developed regions. The fact that the less productive regions in Brazil seem to be benefiting more from broadband may suggest that it can constitute a factor favoring regional convergence in the country. |
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Keywords: | Broadband ICT Productivity |
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