ABSTRACT
Information and communication technologies play a crucial role in the evolution of societies, transformation of industries and economic development. Growing demand for new products and services that require an increasing transmission bandwidth reinforce the view of Internet connection and next-generation networks as general-purpose technologies. Building upon a growth model with endogenous spillovers, the present chapter explores the impact on economic growth exerted by the diffusion of broadband connections in two different samples drawn from the OECD countries. The analysis explores the effects, addressing time-dependent relevant determinants, such as the transitional dynamics between fixed and mobile infrastructures and the structural break due to the 2007/2008 economic crisis. Empirical findings confirm that broadband diffusion significantly boosts economic growth and deeply affects social and economic interactions. Interestingly, the magnitude of the positive effect on growth holds during persisting slowdown of the economy.
