EUKN - European Urban Knowledge Network - Local authority investment in broadband networks

Local authority investment in broadband networks

Introduction

Local authorities investing in a public broadband network can help boost their local economic growth. Conversely, limiting local authority investment in broadband networks deprives authorities of an important tool for stimulating economic growth.

Description

Does local authority investment in broadband networks have an affect on economic growth?

"Broadband and Economic Development: A Municipal Case Study from Florida" from Applied Economic Studies looks at economic growth in one US community - Lakeside, Florida - compared with other towns. In Lakeside the local authority helped fund a broadband network that is accessible to local businesses in addition to municipal departments. In the other towns studied there was no such network. By applying statistical analysis to the growth figures for each town the authors looked to see if this investment had any real effect.

Conclusions

The results show that since the Lakeside broadband network was installed and offered, growth in the municipality has doubled relative to the other towns included in the study. This growth is not linked to the growth in population: economic growth in Lakeside was 128%. The authors conclude that efforts by the government to prevent local authorities from investing in broadband networks have the effect of depriving authorities of the means of stimulating economic growth. Investing in broadband networks is essentially the same as putting money into roads and schools: it is investing in infrastructure.

Contact info

Applied Economic Studies
George S. Ford (President), tel. +1 205 9093709

Publication date

17/08/2005

Links

Applied Economic Studies

Broadband and economic development (PDF, Eng, 175 KB)

Document type

research

Themes

Urban Policy > Economy knowledge & employment > Digital services

Keywords

Internet access