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

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Author Info
Repkine, Alexandre

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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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File URL: http://mpra.ub.uni-muenchen.de/7902/
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Publisher 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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Related research
Keywords: economic growth; technical efficiency; telecommunications investment;

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Find related papers by JEL classification:
O3 - Economic Development, Technological Change, and Growth - - Technological Change
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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  1. Jorgenson, D.W. & Stiroh, K., 1994. "Computers abd Growth," Harvard Institute of Economic Research Working Papers 1707, Harvard - Institute of Economic Research.
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This page was last updated on 2009-12-1.

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