The Economic Impact of Broadband Speed versus Penetration

External PersonnelGary Madden, Walter J. Mayer
Research PartnersUniversity of Mississippi
Project FundingBankwest Curtin Economics Centre
Project StatusComplete

Project Summary

Improved access to broadband internet networks provides new business opportunities, not marketable solutions. That is, co-investments by decentralised firms is needed (in particular, SMEs) to realize innovative opportunities. However, investments in complementary inputs such as personal computers, software and human capital will only be made when expected returns are large enough. While, macroeconomic research does demonstrate a strong positive long-run relationship between broadband and economic growth; no time-profile of returns is provided on which to base investment decisions. Further, the robustness of returns from improved broadband access needs to be conditioned on actual network speeds. This study addresses both concerns.

Project Outputs

Broadband and economic growth: a re-assessment Gary Madden, Walter J. Mayer, Chen Wu This study questions whether broadband network penetration a robust determinant of economic growth. For our preferred dynamic specification, penetration is statistically insignificant with speed (positively) and its interaction with penetration (negatively) impacting on growth. The negatively signed interaction term suggests... Read article 13 January 2016Working Papers Read More
Can measures of broadband infrastructure improve predictions of economic growth? Walter J. Mayer, Gary Madden, Xin Dang This paper investigates whether predictions of future economic growth can be improved by using standard measures of broadband infrastructure. The investigation is carried out by comparing the predictive accuracy of dynamic panel models of economic growth estimated with and without... Read article 30 November 2014Conference Papers Read More