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Does Technology Adoption Matter For Economic Development? An Empirical Evidence For Latin American Countries

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  • Ewa Lechman

    ()
    (Gdansk University of Technology, Gdansk, Poland)

Abstract

Extraordinary spread of new information and communication (ICTs) technologies has been recognized worldwide. ICTs are broadly perceived as tools facilitating economic growth and development, especially in economically backward countries. They are relatively easy and cheap to adopt, require minimum skills for effective usage, bringing opportunities for disadvantaged societies. They enable education, knowledge dissemination and sharing, processing and storing all kinds of information. At a time, existence of extend causal relationships between technology diffusion and general economy performance is highly probable. The paper seeks for empirical evidence in existing quantitative links between process of information and communication technologies (ICTs) adoption and dynamics of economic growth and development in Latin American countries. Preliminary we consider ICTs diffusion patterns in Latin American countries, approximating the diffusion process by S-shaped curves and estimating essential parameters of the curves. Afterwards, adopting a bundle of statistical and econometrical tools we aim to detect: if there is any quantitative relationship between ICTs adoption dynamics and economic growth and development; and we wish to estimate to what extend ICTs contribute to economic growth and development. We hypothesize on existing statistically significant and strong links between the two issues. For the analytical purposes, we use panel data for Latin American economies, in the time framework 1990-2011. All necessary data are derived from World Telecommunication/ICT Indicators Database 2012 (16th edition) and World Development Indicators 2012.

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File URL: ftp://ftp.zie.pg.gda.pl/RePEc/gdk/wpaper/WP_GUTFME_A_17_Lechman.pdf
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Bibliographic Info

Paper provided by Faculty of Management and Economics, Gdansk University of Technology in its series GUT FME Working Paper Series A with number 17.

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Date of creation: Sep 2013
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Handle: RePEc:gdk:wpaper:17

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Keywords: technology; ICTs; economic development; economic growth; Latin America; cross-country study;

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  8. Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
  9. Goldfarb, Avi & Prince, Jeff, 2008. "Internet adoption and usage patterns are different: Implications for the digital divide," Information Economics and Policy, Elsevier, vol. 20(1), pages 2-15, March.
  10. Stephen D. Oliner & Daniel E. Sichel, 1994. "Computers and Output Growth Revisited: How Big Is the Puzzle?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 273-334.
  11. Vicente, Maria Rosalia & Lopez, Ana Jesus, 2006. "Patterns of ICT diffusion across the European Union," Economics Letters, Elsevier, vol. 93(1), pages 45-51, October.
  12. Fulvio Castellaci, 2006. "Convergence and Divergence among Technology Clubs," DRUID Working Papers 06-21, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  13. Jovanovic, Boyan & Lach, Saul, 1989. "Entry, Exit, and Diffusion with Learning by Doing," American Economic Review, American Economic Association, vol. 79(4), pages 690-99, September.
  14. Diego Comin & Bart Hobijn, 2003. "Cross-country technology adoption: making the theories face the facts," Staff Reports 169, Federal Reserve Bank of New York.
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