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It can. If your ISP typically has terrible routes and you can get a good route to a vpn that has better routes going out, it can absolutely improve your connection.
I think it will add some overhead with the bandwidth. but for speed i think jarland is right
Not sure about speed since tunneling usually encrypts traffic (therefore slowing it in most cases) but I think @jarland is referring to latency.
There is also often some sort of compression on the VPN meaning that uncompressed downloads might be faster
Ryan had this idea recently because he gets high latency and even timeouts to random US locations, meanwhile he gets the full speed of his connection to LeaseWeb. So he set up a vpn there and since they have a decent set of upstream providers and a higher quality route to most US locations than his ISP, he's able to get more out of his connection.
I had never really thought of using it that way before, but clearly a simple moment of brilliance.
Yes. Traffic shaping or isp bad routing can make internet connection slow. Higher latency though.
@Simple3x but take those answers above as "it can be faster in some cases" not that "it is faster".
In most cases your cable/dsl provider provides best effort routing and they are not obligated to give you Tier 1 routes. So for some areas where you connect to you could have a really high latency. If you want to speed up your connection using a vpn make sure you are close and have good routes to the server you choose to use the vpn on, and make sure your destination also has good routes to the same server. (read: use traceroute to find fewest hops and lowest ping)
For example, sometimes connecting directly to one of my server in .nl I see over 140ms latency and can't sustain more than 1M/sec to the server. However, when I use my vpn I have setup on a server in Choopa.net my latency reduces to about 105ms and I can sustain transfers up to 6M/sec. In this case Comcast (my provider) peers very well with Choopa and Choopa is know to have great European routes so I end up with lower latency and faster throughput.
Hopefully this helps answer your question.
Cheers!