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The Causal Effect of Broadband Access on Regional Economic Development in Europe
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Broadband access is an important part of modern economic infrastructure and may influence regional economic development. However, broadband is not equally distributed across regions. This paper studies the causal effect of broadband access on economic development in Europe at the NUTS 2 level. The analysis uses panel data for the period 2013–2021 from Eurostat, combined with historical patent data. The analysis includes OLS with fixed effects, a heterogeneity analysis, a switchers–stayers approach, and an instrumental variable strategy based on a shift-share (Bartik) instrument. The instrument combines historical patent activity related to the precursors of modern communication technologies with national broadband speed. The historical patent component reflects path dependence in regional technology adoption. The results indicate a positive and significant relationship between broadband access and GDP per capita. The IV estimates confirm a causal effect and are larger than the OLS results. The effect is stronger in regions with low broadband access, suggesting diminishing returns. The switchers–stayers approach finds no evidence of differential pre-trends, while robustness checks confirm the stability of the results. Overall, the findings indicate that broadband expansion contributes to regional economic development and support policies that promote broadband investment, especially in less connected regions.
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Treballs Finals del Màster d'Economia, Facultat d'Economia i Empresa, Universitat de Barcelona. Curs: 2025-2026, Tutor: Rosina Moreno
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VAN DYCK, Mara. The Causal Effect of Broadband Access on Regional Economic Development in Europe. [consulted: 4 of November of 2026]. Available at: https://hdl.handle.net/2445/231297