October 2023 C - An Econometri - c Analysis of the Impact of

The parameter A is total factor productivity (TFP): it captures influences—such as the level of technology, the efficiency of markets, and the quality of the workforce—that are separate from the quantities of capital and labour employed, and which increase the contributions of these two factors to output. [...] The R-squared statistics for the preferred equations, which measure the proportion of total variation in the dependent variable “explained” by the regressors, are in the range of 0.63–0.64, which is reasonable for a panel with a lot of cross section variation. [...] That the average results for developed countries are about half of that of developing countries may come as a surprise, as recall from Table 5 that the estimated coefficient of the impact of broadband internet in developing countries is only a fifth of that for developed countries in Table 4. [...] 31 Chart 3: Productivity Increases in Canada 2010–2019 and the Contribution of Broadband Internet Interestingly, while overall productivity growth declined in Canada in 2015, partly as a result of a slowdown in the energy sector, broadband internet penetration continued to rise, and so the contribution of broadband internet to productivity also kept rising, ameliorating but not offsetting the over. [...] Overall, the results suggest significant spillovers to the rest of the economy from the adoption of broadband internet, attesting to the role of broadband internet as critical infrastructure for the economy, underpinning productivity across the economy.