Ultrahigh-Speed Fixed Broadband and Rural Development

Abstract

We study the relationship between ultrahigh-speed broadband coverage (≥100 Mbps) and population change in rural areas. Our goal is to determine whether improved telecommunications infrastructure can help to mitigate rural de-population. The study focuses on Spain during the years 2013–20, a period when most of the country's broadband network was deployed. We use instrumental variable estimation to test for a causal link between ultrahigh-speed broadband provision and rural population change. Although the data show a positive correlation between an increase in local ultrahigh-speed broadband coverage and local population growth, after accounting for potential confounding factors and endogeneity, we find no evidence of a causal effect.