IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/42626.html
   My bibliography  Save this paper

Broadband adoption and firm productivity: evidence from Irish manufacturing firms

Author

Listed:
  • Haller, Stefanie A.
  • Lyons, Sean

Abstract

We estimate the effects of adopting DSL broadband on firm productivity and productivity growth allowing for differing broadband speeds. We use a two-stage least squares estimator with geographical broadband availability as an instrument to address some potential endogeneity problems in a panel of Irish manufacturing firms. While more productive firms are on average more likely to be using DSL broadband, we find no statistically signicant effect of broadband adoption on firms' productivity (growth).

Suggested Citation

  • Haller, Stefanie A. & Lyons, Sean, 2012. "Broadband adoption and firm productivity: evidence from Irish manufacturing firms," MPRA Paper 42626, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42626
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/42626/1/MPRA_paper_42626.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mirko Draca & Raffaella Sadun & John Van Reenen, 2006. "Productivity and ICT: A Review of the Evidence," CEP Discussion Papers dp0749, Centre for Economic Performance, LSE.
    2. Tobias Kretschmer, 2012. "Information and Communication Technologies and Productivity Growth: A Survey of the Literature," OECD Digital Economy Papers 195, OECD Publishing.
    3. Arthur Grimes & Cleo Ren & Philip Stevens, 2012. "The need for speed: impacts of internet connectivity on firm productivity," Journal of Productivity Analysis, Springer, vol. 37(2), pages 187-201, April.
    4. Rachel Griffith & Stephen Redding & Helen Simpson, 2009. "Technological Catch‐Up And Geographic Proximity," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 689-720, October.
    5. Bertschek, Irene & Cerquera, Daniel & Klein, Gordon J., 2011. "More bits - more bucks? Measuring the impact of broadband internet on firm performance," ZEW Discussion Papers 11-032, ZEW - Leibniz Centre for European Economic Research.
    6. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    7. Holt, Lynne & Jamison, Mark, 0. "Broadband and contributions to economic growth: Lessons from the US experience," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 575-581, November.
    8. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    9. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    10. Johannes Van Biesebroeck, 2007. "Robustness Of Productivity Estimates," Journal of Industrial Economics, Wiley Blackwell, vol. 55(3), pages 529-569, September.
    11. van Ark, Bart, 1998. "Productivity," Journal of the Japanese and International Economies, Elsevier, vol. 12(2), pages 171-174, June.
    12. Bronwyn HOWELL & Arthur GRIMES, 2010. "Productivity Questions for Public Sector Fast Fibre Network Financiers," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(78), pages 127-146, 2nd quart.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cambini, Carlo & Grinza, Elena & Sabatino, Lorien, 2023. "Ultra-fast broadband access and productivity: Evidence from Italian firms," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    2. Bertschek, Irene & Niebel, Thomas, 2016. "Mobile and more productive? Firm-level evidence on the productivity effects of mobile internet use," Telecommunications Policy, Elsevier, vol. 40(9), pages 888-898.
    3. Fabling, Richard & Grimes, Arthur, 2021. "Picking up speed: Does ultrafast broadband increase firm productivity?," Information Economics and Policy, Elsevier, vol. 57(C).
    4. Ferdinand Pavel & Yann Girard & Arno Hantzsche & Anselm Mattes & Julius Pahlke & Katherina Peter, 2014. "Wachstumsfaktor Telekommunikation: zum Beitrag der Telekommunikationsbranche zur wirtschaftlichen Entwicklung in Deutschland; Endbericht," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 78, number pbk78, April.
    5. Calvin Jones & Dylan Henderson, 2019. "Broadband and uneven spatial development: The case of Cardiff City-Region," Local Economy, London South Bank University, vol. 34(3), pages 228-247, May.
    6. Pierce, Justin R., 2011. "Plant-level responses to antidumping duties: Evidence from U.S. manufacturers," Journal of International Economics, Elsevier, vol. 85(2), pages 222-233.
    7. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB-Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Lindlacher, Valentin, 2021. "Low demand despite broad supply: Is high-speed Internet an infrastructure of general interest?," Information Economics and Policy, Elsevier, vol. 56(C).
    9. Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012. "Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing," Journal of Development Economics, Elsevier, vol. 97(2), pages 339-351.
    10. Kausik Chaudhuri & S. N Rajesh Raj & Subash Sasidharan, 2018. "Broadband Adoption and Firm Performance: Evidence from Informal Sector Firms in India," Working Papers id:12744, eSocialSciences.
    11. Eric J. Bartelsman & Martin Falk & Eva Hagsten & Michael Polder, 2019. "Productivity, technological innovations and broadband connectivity: firm-level evidence for ten European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 25-48, March.
    12. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Kauf, Benedikt & Niebel, Thomas, 2016. "The economic impacts of telecommunications networks and broadband internet: A survey," ZEW Discussion Papers 16-056, ZEW - Leibniz Centre for European Economic Research.
    13. Carlo Cambini & Lorien Sabatino, 2023. "Digital highways and firm turnover," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 32(4), pages 673-713, October.
    14. Haller, Stefanie A. & Lyons, Sean, 2019. "Effects of broadband availability on total factor productivity in service sector firms: Evidence from Ireland," Telecommunications Policy, Elsevier, vol. 43(1), pages 11-22.
    15. Bertschek Irene & Briglauer Wolfgang & Hüschelrath Kai & Kauf Benedikt & Niebel Thomas, 2015. "The Economic Impacts of Broadband Internet: A Survey," Review of Network Economics, De Gruyter, vol. 14(4), pages 201-227, December.
    16. Bastian Stockinger, 2019. "Broadband internet availability and establishments’ employment growth in Germany: evidence from instrumental variables estimations," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-23, December.
    17. Anwar Adem & Richard Kneller & Cher Li, 2023. "Information constraints and technology efficiency: Field experiments benchmarking firms website performance," Discussion Papers 2023-07, University of Nottingham, GEP.
    18. Amir Manzoor, 2014. "Investigating the Factors Affecting Residential Consumer Adoption of Broadband in India," SAGE Open, , vol. 4(4), pages 21582440145, October.
    19. Bertschek, Irene & Cerquera, Daniel & Klein, Gordon J., 2011. "More bits - more bucks? Measuring the impact of broadband internet on firm performance," ZEW Discussion Papers 11-032, ZEW - Leibniz Centre for European Economic Research.
    20. Hussain, Jakir & Bernard, Jean-Thomas, 2017. "Regional productivity convergence: An analysis of the pulp and paper industries in U.S., Canada, Finland, and Sweden," Journal of Forest Economics, Elsevier, vol. 28(C), pages 49-62.

    More about this item

    Keywords

    broadband adoption; productivity; IV regression; industry;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42626. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.