Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249162 
Year of Publication: 
2021
Series/Report no.: 
DIW Discussion Papers No. 1988
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
We study the impact of broadband availability on firms' total factor productivity (TFP) using German firm-level data between 2010 and 2015. We adopt a control function approach to causally identify and separately estimate productivity for 46 two-digit manufacturing and service sectors. Over the sample period, broadband availability, measured by 16 Mbps transmission rates, more than doubled in German municipalities. While this increased broadband availability has almost no effect on firms' productivity in manufacturing, it significantly increases TFP in most service sectors. Yet, the size of the effect is heterogenous across industries.
Subjects: 
broadband internet
productivity
firm-level data
JEL: 
D24
D22
J24
O14
O22
O33
Document Type: 
Working Paper

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