We combine rich data with theory to study how access to fastinternet affects firm’s supplier network by facilitating doing business.By augmenting data on the quasi universe of firm-to-firm transactionswith the information on the length of fibre optic internet cable ineach of 81 province during 2012-2019, a period of large investments ininternet infrastructure, we show that buyers increase their purchasesfrom sellers with better internet connectivity.
- Speaker
- Date
- Monday 19 Feb 2024, 11:30 - 12:30
- Type
- Seminar
- Room
- 2-18
- Building
- Polak Building
The effects of high-speed internet on buyers’ input purchases are stronger for initiallyconcentrated input markets. Next, we present a tractable model offirm-to-firm connections to recover the key parameter of interest: theelasticity of firm-to-firm trade with respect to internet connectivity.The estimated elasticity is sizable across all sectors. In manufacturingand trade, the elasticity with respect to internet connectivity is ofcomparable magnitude with the elasticity with respect to travel time.
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