Impact of very high-speed broadband on local economic growth : empirical evidence

I estimate the impact of very high-speed broadband networks on some measures of local economic growth in France. I use panel data estimations with time- and municipal-fixed effects. I show that municipalities with a very high-speed broadband network tend to be more attractive for companies. I find a positive impact on the number of companies of all non-farm market sectors operating locally, along with a positive impact on company creation. In addition, municipalities with a very high-speed broadband network provide a more favorable environment for entrepreneurship, as it has a positive effect on the creation of sole proprietorships. The estimation results also show a positive impact on unemployment reduction.