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.