Impact of Superfast Broadband on Local
Economic Growth: Empirical Evidence Using a
by Maude Hasbi
Politecnico de Torino & EUI-FSR
Goal of the paper
Assess the impact of differential broadband technologies
on economic outcomes: regional growth and
attractiveness of new businesses (+3,9% av. and +4,8%
of new companies; larger effect for companies of tertiary
Key issue: one of the very few papers with European
high-speed fiber broadband data
relevant for EU policies (targets and subsidies)
relevant because empirical evidence is missing
Based on a rich and sophisticated dataset of around
Hot topics in EU!
No possibilities to check for differences in
technology: FTTH has the same impact of VDSL (at
Technology neutral approach….
But differentiated effect of technology is expected
Use of different thresholds for VDSL (much higher than
15%); different quantitative effects?
No check for presence of mobile broadband (LTE,
especially in rural areas)
Estimation result are based only on matching
More robustness analysis might be needed, e.g. IV
Reverse causality issue: not clear how it is treated.
FTTH only in profitable areas, i.e. in areas where
attractiveness of new businesses or household income is
[PIN in low profitable areas … but here mobile coverage
(4G/LTE) might be a serious competitor]
IV or panel GMM??
Ahfeldt et al. (2016) use a very sofisticated IV approach of
Or DiD approach:
Interaction between a dummy and main variables
Finally …. an interested question: can you evaluate
the impact of the French co-investment broadband