Economic Impact of Broadband in LDCs, LLDCs and SIDS

An Empirical Study

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The findings of this study confirm that both fixed and mobile broadband have a positive economic impact in the most vulnerable countries. The results indicate that for the time period covered by the study the impact of mobile broadband appears to be slightly stronger than that of fixed broadband (Figure  5.1). Mobile broadband in the sample countries yielded a 2.5 to 2.8  per cent increase in GDP per capita per 10 per cent increase in penetration, compared to 2.0 to 2.3 per cent for fixed broadband. However, the difference is not statistically significant, and consequently it cannot be concluded that mobile broadband delivers a superior outcome to fixed broadband. In addition to direct economic effects of investments, it is possible that the study results also reflect the impact of productivity gains from reduced transaction costs and increased market opportunities.


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