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Is Super-Fast Broadband Negative? An IV-Estimation of the Broadband Effect on Firms' Sales and Employment Level

Nordin, Martin LU ; Grenestam, Erik LU and Gullstrand, Joakim LU (2019) In Working Papers
Abstract
This study investigates the relationship between super-fast broadband and firms’ sales and employment level in Sweden. It is important to learn more about this recent technological change and few studies has explored the impact of super-fast broadband on firm outcomes. We use the previous roll-out of second-generation internet access to identify the effect of third-generation internet access. The early investments in optic fiber where largely core broadband network investments paving the way for later investments in third-generation broadband technology. Municipalities choosing providers who prioritized cheap technology (broadband over telephone lines, DSL) targeting the many, thus fell behind municipalities choosing providers investing in... (More)
This study investigates the relationship between super-fast broadband and firms’ sales and employment level in Sweden. It is important to learn more about this recent technological change and few studies has explored the impact of super-fast broadband on firm outcomes. We use the previous roll-out of second-generation internet access to identify the effect of third-generation internet access. The early investments in optic fiber where largely core broadband network investments paving the way for later investments in third-generation broadband technology. Municipalities choosing providers who prioritized cheap technology (broadband over telephone lines, DSL) targeting the many, thus fell behind municipalities choosing providers investing in optic fiber. We find heterogeneity in the broadband effect, but the overall effect is negative. This effect may be associated with the roll-out of 4G mobile broadband in 2011; mobile broadband services are a byproduct of optic fiber because mobile broadband is transmitted from the same high capacity fiber-optic base stations. We suggest that the negative effect found is related to internet use at work and the mixing of private and work related internet use. (Less)
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Working paper
publication status
published
subject
keywords
broadband, optic fiber, firm output, employment, regional analysis, D22, J23, O30, R50
in
Working Papers
issue
2019:8
pages
30 pages
language
English
LU publication?
yes
id
a78e3db1-2fad-4aa8-9df3-1fe1190ad38b
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2019_008.htm
date added to LUP
2019-05-16 09:25:06
date last changed
2019-05-16 09:25:06
@misc{a78e3db1-2fad-4aa8-9df3-1fe1190ad38b,
  abstract     = {This study investigates the relationship between super-fast broadband and firms’ sales and employment level in Sweden. It is important to learn more about this recent technological change and few studies has explored the impact of super-fast broadband on firm outcomes. We use the previous roll-out of second-generation internet access to identify the effect of third-generation internet access. The early investments in optic fiber where largely core broadband network investments paving the way for later investments in third-generation broadband technology. Municipalities choosing providers who prioritized cheap technology (broadband over telephone lines, DSL) targeting the many, thus fell behind municipalities choosing providers investing in optic fiber. We find heterogeneity in the broadband effect, but the overall effect is negative. This effect may be associated with the roll-out of 4G mobile broadband in 2011; mobile broadband services are a byproduct of optic fiber because mobile broadband is transmitted from the same high capacity fiber-optic base stations. We suggest that the negative effect found is related to internet use at work and the mixing of private and work related internet use.},
  author       = {Nordin, Martin and Grenestam, Erik and Gullstrand, Joakim},
  language     = {eng},
  note         = {Working Paper},
  number       = {2019:8},
  series       = {Working Papers},
  title        = {Is Super-Fast Broadband Negative? An IV-Estimation of the Broadband Effect on Firms' Sales and Employment Level},
  url          = {https://swopec.hhs.se/lunewp/abs/lunewp2019_008.htm},
  year         = {2019},
}