The Impact Of Broadband On China’s Economic Growth

As an important national information infrastructure, broadband is an important carrier of information technology applications, and is the basic requirements of national survival and development. Not only developed countries, more and more developing countries have developed national broadband strategies. In this paper, broadband is an object, a more systematic study of the broadband right, and quantify the impact of broadband on economic growth.In the first part, this paper introduced the meaning of broadband, the technology of broadband, the use of broadband and the industry chain of broadband. Then the paper reviewed related foreign and domestic literature. This paper established a theoretical model, while according to the theoretical model this paper established 3SLS simultaneous equations of econometric model. Based on the econometric models this paper determined the variables needed to study, and find related information for relevant data.Then, from the perspective of total factor productivity this paper discussed the impact of broadband on economic growth. Using China’s 2001-2010 annual data for empirical analysis, empirical results pointed out that the broadband penetration has important practical significance on economic growth. Empirical analysis shows that in 2001 to 2010 China’s broadband penetration has a significant impact on the total factor productivity. Assuming all other variables constant in the case, broadband penetration each increased 10%, the national economy will be driven to be improved 0.424%. This paper quantitative estimates the factors that may influence broadband penetration, broadband investment. Subsequently, the paper predicted China’s broadband penetration in the "Twelfth-Five" period, and measured the corresponding amount of investment required. Then, this paper use game theory model to analyze the decision-making game of broadband investment between government and telecom operators, between different operators.Finally, according to the results this paper proposed to establish "broadband universal service fund" to compensate the lack of broadband investment.