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Digital Thailand: Analyzing the Impact of Broadband Connectivity on Firm Productivity

Author

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  • Voraprapa Nakavachara

Abstract

Using a large dataset of almost 100,000 manufacturing establishments in Thailand, this paper studies the impact of broadband internet connectivity on firms' total factor productivity (TFP). The author finds that, for micro-, small-, and medium-sized enterprises, broadband adoption can raise productivity by 23% to 54%. These results support the government's policies in building the country's broadband infrastructure. Although the results reveal substantial benefits of broadband adoption, especially for smaller-sized firms, only about 30% of firms reported adopting broadband or having any types of ICT investments. Perhaps, more could be done to encourage broadband adoptions and private ICT investments for firms of all sizes.

Suggested Citation

  • Voraprapa Nakavachara, 2020. "Digital Thailand: Analyzing the Impact of Broadband Connectivity on Firm Productivity," PIER Discussion Papers 132, Puey Ungphakorn Institute for Economic Research.
    • Handle: RePEc:pui:dpaper:132
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    File URL: https://www.pier.or.th/files/dp/pier_dp_132.pdf
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    Cited by:

    1. Kanit Sangsubhan & Kumpon Pornpattanapaisankul & Pisacha Kambuya, 2023. "Automation and Productivity: Evidence from Thai Manufacturing Firms," PIER Discussion Papers 199, Puey Ungphakorn Institute for Economic Research.
    2. Lekfuangfu, Warn N. & Nakavachara, Voraprapa, 2021. "Reshaping Thailand's labor market: The intertwined forces of technology advancements and shifting supply chains," Economic Modelling, Elsevier, vol. 102(C).

    More about this item

    Keywords

    Digital Economy; Broadband; ICT; Firm Productivity; Thailand;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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