Broadband Infrastructure and Economic Growth in Rural Areas

Aldashev, Alisher; Batkeyev, Birzhan

doi:10.1016/j.infoecopol.2021.100936

Cited by 14 publications

(10 citation statements)

References 24 publications

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“…Second, it reduces firms' production costs. For CAER 15,4 example, Internet access effectively accelerates information diffusion, helps firms reach better suppliers and more sources of finance, significantly reduces transportation and transaction costs and comprehensively promotes productivity (Aldashev and Batkeyev, 2021;Aker and Mbiti, 2010). Third, broadband can facilitate better matching between firms and workers (Autor, 2001).…”

Section: Internet Technologies and Rural Developmentmentioning

confidence: 99%

“…This variable reveals information about the availability of broadband Internet infrastructure and is expected to be negatively correlated with Internet adoption. As documented by Aldashev and Batkeyev (2021), firms near cities are more likely to adopt Internet technologies due to their higher availability.…”

Section: Internet's Impact On Chinese Firm Productivitymentioning

confidence: 99%

“…In developing countries, Aldashev and Batkeyev (2021) find a positive impact of broadband on retailing development in rural Kazakhstan, with domestic sellers using social media for marketing, which translates into higher sales. However, they find no impact on manufacturing.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Third, broadband can facilitate better matching between firms and workers (Autor, 2001). Online access to information and various training courses can also help workers in remote areas, far from formal schools or training centers, to acquire new skills (Aldashev and Batkeyev, 2021). Rural communities and businesses can benefit from broadband through distance learning and teleworking (Stenberg et al ., 2009).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Research findings on the topic vary widely depending on the country, region, industry, sector, firm and job type being studied (Akerman et al ., 2015; DeStefano et al ., 2022; Forman et al ., 2012; Haller and Lyons, 2015, 2019). Most research on the impact of Internet technology on firms' productivity focuses on urban firms, with a relatively limited amount of firm-level evidence focused on rural development in developing countries, as stated by Aldashev and Batkeyev (2021). This paper contributes to the existing literature by assessing the impact of Internet technology on the total factor productivity (TFP) of non-urban firms in China, the largest developing country, and investigates its impact on spatial heterogeneity.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Can internet adoption promote the productivity of firms in China: evidence from a longitudinal study

Zhou,

Wang

2023

CAER

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PurposeThis paper aims to conduct research to examine the impact of Internet adoption on the productivity of firms in non-urban China.Design/methodology/approachThe study investigates the impact of Internet adoption on firms' productivity in non-urban China. More specifically, the authors conduct a comprehensive and rigorous study while addressing concerns related to firm-level endogeneity by utilizing firm-level panel data. Information on firms in non-urban areas is collected from China's Annual Surveys of Industrial Firm data. For robustness, the authors implement the instrumental variables approach and propensity score matching estimations to strengthen the evidence for suggestive causal inference. Furthermore, the authors also examine the mechanisms and group heterogeneity.FindingsEvidence indicate that the adoption of Internet technology positively impacts the total factor productivity (TFP) of firms in non-urban areas. According to the heterogeneity analysis, the marginal effect of Internet adoption is more significant and pronounced for labor-intensive, private and small-scale manufacturing firms. Moreover, additional evidence suggest that Internet adoption is beneficial for non-urban firms in expanding their business and enlarging their market. It has also been found that the positive effect of Internet adoption on firms' TFP is amplified by expanding public infrastructure.Originality/valueThe current study supports that the informatization strategy benefits non-urban firms and promotes rural revitalization. The findings suggest the possibility of firms borrowing market size from the closest cities and supporting the ongoing policies of investing in broadband infrastructure to narrow the urban-rural digital gap in China.

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Section: Internet Technologies and Rural Developmentmentioning

confidence: 99%

Section: Internet's Impact On Chinese Firm Productivitymentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%