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ICT Use in the Developing World: An Analysis of Differences in Computer and Internet Penetration

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  • Menzie D. Chinn
  • Robert W. Fairlie

Abstract

Using panel data for 161 countries, we explore the determinants of cross-country disparities in personal computer and Internet penetration. We find evidence indicating that income, human capital, the youth dependency ratio, telephone density, legal quality, and banking sector development are associated with technology penetration rates. Estimates from Blinder-Oaxaca decompositions comparing rates in the developed-country total to developing countries (Total, Brazil, China, Indonesia, India, Mexico, and Nigeria) reveal that the main factors responsible for low rates of technology penetration rates in developing countries are disparities in income, telephone density, legal quality, and human capital. In terms of dynamics, our results indicate fairly rapid reversion to long-run equilibrium for Internet use, and somewhat slower reversion for computer use. Copyright � 2010 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 18 (2010)
Issue (Month): 1 (02)
Pages: 153-167

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Handle: RePEc:bla:reviec:v:18:y:2010:i:1:p:153-167

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Cited by:
  1. Grazzi, Matteo & Vergara, Sebastián, 2012. "ICT in developing countries: Are language barriers relevant? Evidence from Paraguay," Information Economics and Policy, Elsevier, vol. 24(2), pages 161-171.
  2. Yusuf, Shahid & Nabeshima, Kaoru & Wei Ha, 2007. "What makes cities healthy ?," Policy Research Working Paper Series 4107, The World Bank.
  3. Corrado Benassi & Marcella Scrimitore, 2013. "Income Distribution in Network Markets," Working Paper Series 13_13, The Rimini Centre for Economic Analysis.

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