Evaluating the effect of the expansion of broadband connection on GDP
DOI:
https://doi.org/10.11606/1980-5330/ea143788Keywords:
broadband, cluster analysis, panel data, instrumental variable, k-meansAbstract
This study aims to assess the effect of broadband in Brazil through a panel data model of 5,564 municipalities in the period 2007 to 2014. We use cluster analysis to control regional differences. It can be seen that the effect of broadband on municipal GDP is regionally differentiated. The greatest impact is on municipalities with higher per capita income and high urban concentration. We also test the hypothesis that the broadband effect is of the “inverted U” type. The results do not show that this hypothesis can be denied.