Transaction Costs, Information Technology and Development

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Transaction Costs, Information Technology and Development

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Nirvikar Singh (University of California, Santa Cruz)

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Nirvikar Singh

Abstract

This paper explores potential channels through which information technology (IT) affects economic development. The channel emphasized here is the reduction of transaction costs through the use of information technology. We discuss the nature of transaction costs, their possible impacts on economic outcomes, and the impacts of IT on transaction costs. We provide a theoretical discussion of how a reduction in transaction costs may affect the number of intermediate goods that are produced, and in turn how that number may affect the development path of the economy. We then draw on our fieldwork in rural India that examined the economics of rural Internet kiosks, and relate this multifaceted case study to the theoretical discussion of transaction costs. We conclude with a broader discussion of the potential impact of IT on developing economies.

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Paper provided by EconWPA in its series Development and Comp Systems with number 0412005.

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Length: 30 pages
Date of creation: 06 Dec 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0412005

Note: Type of Document - pdf; pages: 30
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Other versions of this item:

Article
- Nirvikar Singh, 2008. "Transaction costs, information technology and development," Indian Growth and Development Review, Emerald Group Publishing, vol. 1(2), pages 212-236, December. [Downloadable!] (restricted)
Paper
- Nirvikar Singh, 2004. "Transaction Costs, Information Technology and Development," Santa Cruz Department of Economics, Working Paper Series 1027, Department of Economics, UC Santa Cruz. [Downloadable!]
- Singh, Nirvikar, 2008. "Transaction Costs, Information Technology and Development," MPRA Paper 9095, University Library of Munich, Germany. [Downloadable!]
- Nirvikar Singh, 2004. "Transaction Costs, Information Technology and Development," Santa Cruz Center for International Economics, Working Paper Series 1045, Center for International Economics, UC Santa Cruz. [Downloadable!]

Find related papers by JEL classification:
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
O3 - Economic Development, Technological Change, and Growth - - Technological Change
L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
P2 - Economic Systems - - Socialist Systems and Transition Economies

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-12-12 (All new papers)
NEP-DEV-2004-12-12 (Development)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Other versions:
- Michael Funke & Ralf Ruhwedel, 2004. "Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe," Macroeconomics 0401016, EconWPA. [Downloadable!]
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Other versions:
- Nirvikar Singh, 2004. "Information Technology and Rural Development in India," Santa Cruz Center for International Economics, Working Paper Series 1028, Center for International Economics, UC Santa Cruz. [Downloadable!]
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Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December. [Downloadable!]
Other versions:
- Kevin J. Stiroh, 2001. "Information technology and the U.S. productivity revival: what do the industry data say?," Staff Reports 115, Federal Reserve Bank of New York. [Downloadable!]
Nirvikar Singh, 2004. "Information Technology as an Engine of Broad-Based Growth in India," Development and Comp Systems 0412012, EconWPA. [Downloadable!]
Francesco Daveri, 2003. "Information Technology and Productivity Growth Across Countries and Sectors," Working Papers 227, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
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Other versions:
- Timothy J. Kehoe & Kim J. Ruhl, 2006. "How Important is the New Goods Margin in International Trade?," 2006 Meeting Papers 733, Society for Economic Dynamics. [Downloadable!]

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Singh, Nirvikar, 2006. "Services-Led Industrialization in India: Assessment and Lessons," MPRA Paper 1276, University Library of Munich, Germany, revised Dec 2006. [Downloadable!]

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