How important are mobile broadband networks for global economic development?

Abstract

Since the beginning of the 21st century mobile broadband has diffused very rapidly in many countries around the world. This paper investigates to what extent the diffusion of mobile broadband has impacted economic development in terms of GDP. The results show that there is a significant effect from mobile broadband on GDP both when mobile broadband is first introduced and gradually as mobile broadband diffuses throughout different economies. Based on a two stage model we are able to conclude that on average a 10 percent increase of mobile broadband adoption causes a 0.6–2.8 percent increase in economic growth depending on the model specifications.