This paper investigates the impact of mobile broadband Internet on business creation in Tunisia. Using a rich dataset of Tunisian delegations, the study employs a count model and fixed effects panel data estimation to assess the influence of mobile broadband Internet quality and delegation characteristics on firm creation. The empirical findings demonstrate a robust positive relationship between the density of 4G antennas per 10,000 inhabitants and the number of new business creations (and a positive impact on net business creations). Notably, this relationship is stronger and exhibits later effects in rural areas, particularly on the peripheries of major urban centers, suggesting varying rates of technology adoption and challenging the hypothesis of the “death of distance” that broadband Internet was expected to bring. This research highlights the potential role of mobile broadband in stimulating local economic growth and sheds nuanced light on the economic implications of the digital divide.

Authors
Jean-Baptiste Guiffard
Post-doctoral Researcher, Telecom Paris

Research Fellows
Mohamed Ali Marouani
Associate Professor of Economics, Sorbonne University