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Broadband Internet and New Firm Location Decisions in Rural Areas

Younjun Kim, Peter F. Orazem · 2016 · American Journal of Agricultural Economics

Summary. Broadband deployment significantly increases where new firms choose to locate in rural areas. Using a difference-in-differences approach that controls for location-specific factors, the researchers found that broadband availability positively influences new firm entry decisions. The effect is strongest in more densely populated rural areas and those near metropolitan regions, indicating that broadband's impact on firm location grows stronger where agglomeration economies are present.

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Kim, Y., & Orazem, P. F.. (2016). Broadband Internet and New Firm Location Decisions in Rural Areas. American Journal of Agricultural Economics. https://doi.org/10.1093/ajae/aaw082

Details

DOI
10.1093/ajae/aaw082
Countries
United States
Regions
North America
Categories
broadband-and-digital, entrepreneurship, regional-innovation-systems
Added
2026-04-28