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On the regional impact of broadband on productivity: the case of Brazil

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  • Juan Jung

    (AQR-IREA, Universitat de Barcelona, Av. Diagonal 690, 08034 Barcelona, Spain.)

  • Enrique López-Bazo

    (AQR-IREA, Universitat de Barcelona, Av. Diagonal 690, 08034 Barcelona, Spain.)

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, instead of the usual country-level analysis, means an opportunity to disentangle the economic impact of broadband at territories which share a common institutional and regulatory framework as are the regions inside a country. 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.

Suggested Citation

  • Juan Jung & Enrique López-Bazo, 2017. "On the regional impact of broadband on productivity: the case of Brazil," IREA Working Papers 201708, University of Barcelona, Research Institute of Applied Economics, revised May 2017.
    • Handle: RePEc:ira:wpaper:201708
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    Broadband; Information and Communication Technologies; Regional Productivity. JEL classification: O33; O47; R11.;
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