Socioeconomic Impact of Broadband in Latin American and Caribbean Countries

López-Rivas, Rubén
Nov 2012
Broadband plays a key role in society, impacting GDP, productivity, and employment. In the Latin American and Caribbean region, which is characterized by low broadband penetration costly Internet connection, low usage, and sporadic adoption of mobile technology, a major goal for governments is to universalize access to and usage of broadband. This paper presents an econometric model which shows that, in Latin America and the Caribbean, on average, a 10 percent higher broadband penetration is associated with 3.19 percent higher GDP, 2.61 percent higher productivity, and 67,016 new jobs. It also defines the variables that a government can control to help increase the number of broadband subscriptions per capita in order to effectively improve socioeconomic conditions in the country.