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Does the digital divide matter? The role of information and communication technology in cross-country level and growth estimates

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  • Leonardo Becchetti
  • Fabrizio Adriani

Abstract

The bulk of information and communication technology is made of weightless, implementable, and infinitely reproducible knowledge products (such as software and databases). These products are transferred by telephone lines, accessed through internet hosts, and processed through personal computers. In this work, the coefficient of the labour augmenting factor in the aggregate production function has been estimated using proxies of variables crucially affecting the diffusion of (non-rival and almost non-excludable) knowledge products. This specification provides interesting answers to some of the open issues in the existing growth literature. The most recent information, though available for a limited period, shows that telephone lines, personal computers, mobile phones, and internet hosts significantly affect levels and growth of income per worker across countries. The result is robust to changes in sample composition, econometric specification, and estimation approach.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 14 (2005)
Issue (Month): 6 ()
Pages: 435-453

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Handle: RePEc:taf:ecinnt:v:14:y:2005:i:6:p:435-453

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Related research

Keywords: Cross-country growth; ICT; Mankiw Romer Weil;

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References

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Citations

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Cited by:
  1. Yartey, Charles Amo, 2008. "Financial development, the structure of capital markets, and the global digital divide," Information Economics and Policy, Elsevier, vol. 20(2), pages 208-227, June.
  2. Francesco VENTURINI, 2008. "Information Technology, Research & Development, or Both? What Really Drives A Nation's Productivity," Working Papers 321, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Charles Amo Yartey, 2006. "Financial Development, the Structure of Capital Markets, and the Global Digital Divide," IMF Working Papers 06/258, International Monetary Fund.
  4. Sophia P. Dimelis & Sotiris K. Papaioannou, 2011. "Technical Efficiency and the Role of ICT: A Comparison of Developed and Developing Countries," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 47(0), pages 40-53, July.
  5. Lechman, Ewa, 2012. "Technology convergence and digital divides. A country-level evidence for the period 2000-2010," MPRA Paper 41849, University Library of Munich, Germany.
  6. Federico Biagi, 2013. "ICT and Productivity: A Review of the Literature," JRC-IPTS Working Papers on Digital Economy 2013-09, Institute of Prospective Technological Studies, Joint Research Centre.
  7. Francesco Venturini, 2009. "The long-run impact of ICT," Empirical Economics, Springer, vol. 37(3), pages 497-515, December.

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