--- canonical_url: "https://csls.ca/research/an-econometric-analysis-of-the-impact-of-broadband-internet-on-productivity/" title: "An Econometric Analysis of the Impact of Broadband Internet on Productivity" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-01T12:47:10+00:00" date_modified: "2026-07-01T12:47:10+00:00" post_type: "research" summary: "" post_tag: - "broadband internet" - "Canada" - "developed countries" - "developing countries" - "digital infrastructure" - "econometric analysis" - "labour productivity" - "panel data" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" - "Technology and Innovation" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # An Econometric Analysis of the Impact of Broadband Internet on Productivity Canonical URL: https://csls.ca/research/an-econometric-analysis-of-the-impact-of-broadband-internet-on-productivity/ # An Econometric Analysis of the Impact of Broadband Internet on Productivity [Download full PDF report](https://csls.ca/pdf/csls2023-08-1.pdf) Cite this report × Cite this report as: Sargent, Tim. 2023. “An Econometric Analysis of the Impact of Broadband Internet on Productivity.” CSLS Research Report 2023-08. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/an-econometric-analysis-of-the-impact-of-broadband-internet-on-productivity/ ## Author: - Tim Sargent Centre for the Study of Living Standards (CSLS); Macdonald-Laurier Institute ## Report 2023-08 December 2023 47 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [Apprenticeship in Canada: A Training System Under Siege? Andrew Sharpe December 1999 | Report 1999-03 | 59 pages](https://csls.ca/research/apprenticeship-in-canadaa-training-system-under-siege/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Creating a More Efficient Labour Market Centre for the Study of Living Standards (CSLS) June 2001 | Report 2001-02 | 147 pages](https://csls.ca/research/creating-a-more-efficient-labour-market/) [Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress Centre for the Study of Living Standards (CSLS) November 2001 | Report 2001-03 | 177 pages](https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/) [The Impact of the National Child Benefit Supplement on the Low Income Status of Canadian Families with Children: The SPSD/M Results Centre for the Study of Living Standards (CSLS) June 2002 | Report 2002-01 | 59 pages](https://csls.ca/research/the-impact-of-the-national-child-benefit-supplement-on-the-low-income-status-of-canadian-families-with-children-the-spsd-m-results/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn In this paper we look at whether increases in broadband internet penetration have a significant impact on productivity. We use data on a panel of 116 countries over the period 2009–2019 to estimate the impact of increases in fixed broadband penetration rates and high-speed broadband penetration rates on labour productivity, measured as output per person. We find a significant impact on productivity from increases in fixed broadband penetration rates. Our estimates indicate that broadband internet increased labour productivity growth by an average of 0.20 percentage points annually in developed countries and 0.26 percentage points in developing countries: this meant that broadband internet accounted for around 16 per cent of productivity growth in developed countries and 20 per cent of productivity growth in developing countries. For Canada we find that broadband internet contributed an average of 0.15 percentage points annually to Canada’s overall productivity growth of 0.91 per cent, about 17 per cent of total productivity growth. However, we did not find significant impacts for high-speed broadband over the period studies: it is possible that this is because applications that require higher speeds, such as videoconferencing, had not been widely deployed over our time period. This study emphasizes the crucial impact of broadband internet investment on boosting Canada’s economywide productivity. This research indicates an important role for the government in facilitating the expansion of broadband access, optimizing regulatory frameworks, and stimulating private sector investment, especially in underserved regions, to enhance the social and economic benefits throughout Canada. Dans cet article, nous examinons si l’augmentation de la pénétration de l’Internet à large bande a une incidence importante sur la productivité. Nous utilisons des données portant sur un panel de 116 pays pour la période 2009-2019 afin d’estimer l’effet de l’augmentation des taux de pénétration du haut débit fixe et du haut débit à grande vitesse sur la productivité du travail, mesurée par la production par personne. Nous constatons une incidence importante de l’augmentation des taux de pénétration du haut débit fixe sur la productivité. Nos estimations indiquent que l’Internet à large bande a accru la croissance de la productivité du travail de 0,20 point de pourcentage par année en moyenne dans les pays développés et de 0,26 point de pourcentage dans les pays en développement; cela signifie que l’Internet à large bande a représenté environ 16 % de la croissance de la productivité dans les pays développés et 20 % dans les pays en développement. Pour le Canada, nous constatons que l’Internet à large bande a contribué en moyenne 0,15 point de pourcentage par année à la croissance globale de la productivité du Canada, qui s’élevait à 0,91 %, soit environ 17 % de la croissance totale de la productivité. Cependant, nous n’avons pas constaté d’incidence importante du haut débit à grande vitesse durant la période étudiée : il est possible que cela s’explique par le fait que les applications nécessitant des vitesses plus élevées, comme la vidéoconférence, n’étaient pas encore largement déployées durant notre période d’étude. Cette étude souligne l’incidence cruciale de l’investissement dans l’Internet à large bande sur l’essor de la productivité de l’ensemble de l’économie canadienne. Cette recherche indique un rôle important pour le gouvernement dans la facilitation de l’expansion de l’accès au haut débit, l’optimisation des cadres réglementaires et la stimulation de l’investissement du secteur privé, particulièrement dans les régions mal desservies, afin d’accroître les retombées sociales et économiques dans l’ensemble du Canada. [Download full PDF report](https://csls.ca/pdf/csls2023-08-1.pdf)