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Digital Divide and Growth Gap: A Cumulative Relationship

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  • Young Lee
  • Jeong Hun Oh
  • Hwan-Joo Seo

Abstract

This paper, using a cumulative growth model and a catch-up model, verifies the cumulative relationship between IT investment and economic growth, and then examines whether this relationship enlarges the differences in the economic growth among OECD countries. We observe the following results: first, those countries making a rapid progress in IT capital formulation enhance labour productivity faster than the average OECD member countries. Second, non-IT capital has larger impacts on the economy than IT capital.

Suggested Citation

  • Young Lee & Jeong Hun Oh & Hwan-Joo Seo, 2002. "Digital Divide and Growth Gap: A Cumulative Relationship," WIDER Working Paper Series DP2002-88, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-88
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-88.pdf
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    References listed on IDEAS

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    Cited by:

    1. Christine Zhen-Wei Qiang & Alexander Pitt & Seth Ayers, 2004. "Contribution of Information and Communication Technologies to Growth," World Bank Publications - Books, The World Bank Group, number 15059, December.

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