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ICT Penetration and Aggregate Production Efficiency: Empirical Evidence for a Cross-Section of Fifty Countries

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  • Repkine, Alexandre

Abstract

This study investigates the impact of telecommunications penetration on the aggregate production efficiency in a large cross-section of fifty countries. We show that higher levels of ICT capital stock penetration increase technical efficiency levels in the aggregate production function. However, depending on the geographical location the effects of ICT penetration are different. Our empirical findings suggest that increasing the per capita telecommunications capital in the form of land line and mobile telephones, computers, Internet access and the like is likely to considerably increase productive efficiency in case of the poorest nations, while in the more developed countries such gains have been largely exhausted. In the end we offer several avenues for more research based on the caveats discovered while working on this study.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7902.

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Date of creation: 28 Feb 2008
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Handle: RePEc:pra:mprapa:7902

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Keywords: economic growth; technical efficiency; telecommunications investment;

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  1. Mary O'Mahony & Michela Vecchi, 2003. "Is there an ICT impact on TFP? A heterogeneous dynamic panel approach," NIESR Discussion Papers 219, National Institute of Economic and Social Research.
  2. Thompson, Herbert Jr. & Garbacz, Christopher, 2007. "Mobile, fixed line and Internet service effects on global productive efficiency," Information Economics and Policy, Elsevier, vol. 19(2), pages 189-214, June.
  3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  4. Sanjeev Dewan & Kenneth L. Kraemer, 2000. "Information Technology and Productivity: Evidence from Country-Level Data," Management Science, INFORMS, vol. 46(4), pages 548-562, April.
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Cited by:
  1. 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.

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