Broadband development and firm creation: Dif-in-dif estimates for Germany

Abstract: Although some of the outcomes of the digital transformation are reflected in the scientific literature, the connection between high-speed internet transmission rates and firm entries is still poorly studied. While some positive impact of basic broadband availability in Germany was found in our previous studies, in this paper we decided to examine the effects of better broadband coverage between 2014 and 2019 (second implementation phase of EU Digital Agenda) by applying dif-in-dif method. Except for ICT firms in district areas and a whole sample of firms in production sector, our dif-in-dif estimates seem to be statistically insignificant. That supports a view that just a certain speed of internet is necessary for the entrepreneurial milieu, while higher transmission rates are beneficial only in some particular cases.

Keywords: broadband, entrepreneurship, germany, firm-birth

DOI: 10.54941/ahfe1001527

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