posted on August 09, 2010 16:50
WSIS Lab team received from Dr Pantelis Koutroumpis - Imperial College Business School, Imperial College London a contribution to the WSIS Lab discussion about economic impact of broadband.
Dr Pantelis Koutroumpis would like to add to the discussion his paper: "The economic impact of broadband on growth: A simultaneous approach" from Telecommunications Policy, Volume 33, Issue 9 (October 2009), Pergamon Press, Inc., Tarrytown, NY, USA.
In this paper a simultaneous equations model is utilized to control for the dual relationship between infrastructures and growth. The results suggest that there are increasing returns to broadband telecommunications investments, which are consistent with the persistence of network externalities. What has been observed is that there is evidence of a critical mass phenomenon in broadband infrastructure investments. The level that has been identiﬁed as critical is 30% subscriber penetration (~50% household penetration). The econometric specification showed that these eﬀects exist in Scandinavian countries, which enjoy higher returns from their increased broadband adoption.
The economic impact of broadband on growth: A simultaneous approach" is available on:
Please download updated document on Economic Impact of Broadband: Global Review of Evidence.
WSIS Lab team