Broadband adoption in Latin American countries: Does geographic proximity matter?

Abstract

This paper analyzes whether geographic proximity among countries can be a significant factor in explaining fixed and mobile broadband adoption in Latin America. To address the research question if neighbor effects could impact on the broadband penetration of a country, we estimate a Spatial Durbin panel data model over the period 2011-2015, for 18 Latin American countries. Results obtained suggest a significant spatial effect of the broadband penetration. In particular, results show positive spatial effects for fixed broadband (confirming previous studies in Europe) but negative spatial effects for mobile broadband adoption.