Broadband, effective labor, and economic growth during the COVID-19 pandemic period: evidence from a cross-country study

Abstract

Abstract Purpose This study attempts to explore the mechanism of how broadband influences economic growth during the COVID-19 pandemic period, and examine different impacts of fixed and mobile broadband on economic growth during this period. Design/methodology/approach The panel data regression method and across-country data are used to estimate the impacts of fixed broadband and mobile broadband on economic growth rate. Findings The mobile broadband penetration rate and the mobile broadband network size have positive and significant correlations with economic growth rate during 2020–2021. Practical implications The findings have the policy implications that governments should promote the diffusion of mobile broadband especially 5G to sustain economic growth during the time of the pandemic. Social implications The diffusion of mobile broadband and 5G further facilitates telework mode. Originality/value This study theorizes the role of broadband in economic growth by proposing a new concept – effective labor – which reflects the extent of labor participation in productive activities when the containment measures of the pandemic are implemented.