2007
DOI: 10.1080/10438590600661889
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Information Technology as a Factor of Economic Development: Evidence from Developed and Developing Countries

Abstract: This article explores the role of information and communication technologies (ICT) and of its individual components as factors of economic development. An augmented production function is employed to estimate the total ICT effect on labor productivity growth as well as the impact exerted by its components (hardware, software, and communications). The empirical analysis is based on a sample of 42 developed and developing countries, covering the 1993-2001 period. A positive and significant ICT growth effect is e… Show more

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Cited by 105 publications
(94 citation statements)
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“…At the firm-level, ICT access and usage have been found to have a positive relation on productivity in countries around the globe, including in Africa (Esselaar et al, 2007;Kumar et al, 2016;Paunov & Rollo, 2015). However, other studies using ICT capital stock as an independent variable find a lower positive effect in developing countries compared to developed ones (Papaioannou & Dimelis, 2007). Yet other studies find no positive effects for ICT investments or broadband adoption (Haller & Lyons, 2015;Pohjola, 2002).…”
mentioning
confidence: 71%
“…At the firm-level, ICT access and usage have been found to have a positive relation on productivity in countries around the globe, including in Africa (Esselaar et al, 2007;Kumar et al, 2016;Paunov & Rollo, 2015). However, other studies using ICT capital stock as an independent variable find a lower positive effect in developing countries compared to developed ones (Papaioannou & Dimelis, 2007). Yet other studies find no positive effects for ICT investments or broadband adoption (Haller & Lyons, 2015;Pohjola, 2002).…”
mentioning
confidence: 71%
“…These results are possibly driven by the fact that the ICT input variable is measured as the share of nominal ICT investment in GDP, which does not incorporate any quality improvements of ICT over time. Papaioannou and Dimelis (2007) show that the impact of the ICT capital stock on labor productivity growth is stronger in developed than in developing countries.…”
Section: Related Literaturementioning
confidence: 99%
“…Czerniawska and Potter (1998) stressed that companies ignoring Internet technologies and e-business concepts may lose opportunities to gain a competitive edge. Also, Papaioannou and Dimelis (2007) found a positive and significant impact of ICT on productivity growth.…”
Section: Benefits Of the Internet Technologiesmentioning
confidence: 99%