Infrastructure Investment and Rural Economic Development: An Evaluation of USDA's Broadband Loan Program

Kandilov, Ivan T.; Renkow, Mitch

doi:10.1111/j.1468-2257.2010.00524.x

Cited by 110 publications

(116 citation statements)

References 13 publications

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“…Indeed, we have seen the convergence of voice, video and data services heightening the importance of fast and reliable digital connectivity. Broadband investment has been associated with positive economic growth (Holt & Jamison, 2009;Czernich et al 2011;Koutroumpis, 2009, Kolko, 2012, Qiang et al 2009, Röller & Waverman, 2001, increasing productivity, employment and the creation of new enterprises (Katz, 2009;Malecki & Moriset 2008;Kandilov & Renkow, 2010). For example, it has been estimated that firms can increase their productivity by between 7-10 % regardless of their location (urban versus rural) or the intensity of their information usage (Grimes et al 2012), providing they have the necessary human capital (Mack & Faggian, 2013).…”

Section: Introductionmentioning

confidence: 99%

Who’s Superconnected and Who’s Not? Investment in the UK’s Information and Communication Technologies (ICT) Infrastructure

Oughton

Tyler

Alderson

2015

Infrastruct. Complex

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The Information and Communication Technologies (ICT) infrastructure sector has dramatically expanded over the past decade as the demand for increased digital connectivity has increased from both companies and consumers. Broadband investment has been increasingly associated with positive economic growth and digital connectivity is seen as an essential ingredient with which to increase productivity, employment and create new enterprises. Hence, there is concern that companies and consumers in particular locations are disadvantaged if they are unable to obtain sufficient connectivity. At the present time there has been limited analysis of where new investment has taken place, why it has taken place in specific locations, and what the key economic and socio-economic drivers have been influencing this. The role of regulation in this process is also important to understand. This article draws on two unique, uncensored infrastructure datasets from the UK's telecommunications regulator Ofcom to assess the factors driving investment in fixed and mobile ICT infrastructure. The fixed infrastructure model utilised modem sync speed measurements from over 20 million premises, aggregated to 7004 Middle Super Output Areas (MSOA) (97.3 %) in England and Wales, to provide comprehensive micro-geographic analysis for the first time. The mobile model employed the average data transfer per premises as a network capacity-demand metric for 173 counties and Unitary Local Authorities (ULAs) (98.3 %) in England, Scotland and Wales. Using predictors at a range of spatial scales, multilevel modelling utilising Markov Chain Monte Carlo (MCMC) methods was used to estimate both the fixed and mobile broadband infrastructure models. The results confirm many of the prevailing postulates of existing telecommunications theory, namely, that dense, wealthy and well-educated areas are attractive investment hotbeds for telecommunication technologies. In the UK's fixed ICT infrastructure market, inter-platform competition was found to have a positive impact on investment compared to the mixed results found for intra-platform competition. On the whole, telecommunication investment in the UK appears to be driven by the same drivers as the much documented U.S. case, but further spatially granular research needs to be undertaken to examine the market dynamics between the incumbent and different forms of induced competition across the telecommunication network.

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Section: Introductionmentioning

confidence: 99%

Who’s Superconnected and Who’s Not? Investment in the UK’s Information and Communication Technologies (ICT) Infrastructure

Oughton

Tyler

Alderson

2015

Infrastruct. Complex

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“…For example, Kandilov and Renkow (2009) use both differences-in-differences and propensity score techniques 62 to find that USDA broadband loans had no impact on economic development. However, even the most basic use of econometrics would be a step forward in most evaluations.…”

mentioning

confidence: 99%

Demand-Side Programs to Stimulate Adoption of Broadband: What Works?

Hauge¹,

Prieger²

2010

Review of Network Economics

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We examine the evidence available on the efficacy of demand-side programs intended to stimulate broadband adoption. We review studies that attempt to measure results. Our suggestions for future program evaluations are to include cost-benefit analysis as a standard part of program review and to make clear that the purpose of evaluation is to assess progress made toward the ultimate policy goals rather than the program's proximate implementation goals. Appropriate data must be collected to draw conclusions, and appropriate statistical methods must be used to determine the causal impacts of a program. This has rarely been done to date.

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“…Finally, looking more closely at rural areas, Kandilov and Renkow (2010) found that loan programs for broadband deployment and adoption in the United States have produced a higher positive impact in rural communities closest to urban areas, thus excluding the most disadvantaged rural areas.…”

Section: The Dilemma Of the Rural Impact Of Broadbandmentioning

confidence: 97%