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The heterogeneous role of broadband access on establishment entry and exit by sector and urban and rural markets

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  • Chen, Yulong
  • Ma, Liyuan
  • Orazem, Peter F.

Abstract

Broadband access has heterogeneous effects on establishment entry and exit across industries and across urban and rural markets. On average, broadband encourages establishment entry and reduces establishment exit. Broadband entry results in a positive net entry in both urban and rural markets. The effect of broadband varies across sectors, with net establishment gains in construction and professional services in both urban and rural markets. Net establishment gains in finance and insurance, real estate, information, and arts and entertainment were confined to urban markets. Net establishment losses were experienced in urban retail and in rural manufacturing and hospitality sectors. Broadband also leads to a net reallocation of establishments in educational services from rural to urban areas.

Suggested Citation

  • Chen, Yulong & Ma, Liyuan & Orazem, Peter F., 2023. "The heterogeneous role of broadband access on establishment entry and exit by sector and urban and rural markets," Telecommunications Policy, Elsevier, vol. 47(3).
    • Handle: RePEc:eee:telpol:v:47:y:2023:i:3:s0308596123000150
    DOI: 10.1016/j.telpol.2023.102504
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    2. Carlo Cambini & Lorien Sabatino, 2023. "Digital highways and firm turnover," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 32(4), pages 673-713, October.
    3. Yanlin Sun & Shaoxiong Ma & Hao Feng, 2023. "The New Geography of Manufacturing in China: The Internet and Manufacturing Agglomeration," Sustainability, MDPI, vol. 15(17), pages 1-21, August.
    4. Strover, Sharon & Choi, Jaewon & Schrubbe, Alexis, 2024. "Broadband, rural contexts and local economic dynamics," Telecommunications Policy, Elsevier, vol. 48(3).
    5. Anil Rupasingha & John Pender & Ryan Williams, 2024. "Broadband and rural development: Impacts of the U.S. Department of Agriculture Broadband Initiatives Program on saving and creating jobs," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 698-721, April.

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    More about this item

    Keywords

    Broadband; Establishment entry; Establishment exit; Churning;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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