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Contribution of Information and Communication Technologies to Growth

Author

Listed:
  • Christine Zhen-Wei Qiang
  • Alexander Pitt
  • Seth Ayers

Abstract

Thee worldwide development of information and communication technology (ICT) has accelerated dramatically over the past decade. Increased ICT production and use has the potential to influence economic growth positively. This paper focuses on the linkage between ICT and output growth and summarizes the findings in the literature on the contribution of ICT to economic growth arising from capital deepening and increases in total factor productivity. It looks at the methodologies used to assess the magnitude of the different channels through which ICT influences productivity growth, summarizes the key factors that increase and obstruct ICT expansion, and outlines the challenges developing countries face in maximizing ICT's contribution to growth. Strengthening institutions to create an environment that attracts ICT investment and promotes ICT use; exploiting network and spillover effects by creating domestic demand; and promoting "adaptation close to use" to match local capacity and local needs have been identified as policies to surmount these challenges.

Suggested Citation

  • 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.
  • Handle: RePEc:wbk:wbpubs:15059
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    References listed on IDEAS

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    Cited by:

    1. Andrés, Luis & Cuberes, David & Diouf, Mame & Serebrisky, Tomás, 0. "The diffusion of the Internet: A cross-country analysis," Telecommunications Policy, Elsevier, vol. 34(5-6), pages 323-340, June.
    2. Imran Ur Rahman & Mohsin Shafi & Liu Junrong & Enitilina Tatiani M.K. Fetuu & Shah Fahad & Buddhi Prasad Sharma, 2021. "Infrastructure and Trade: An Empirical Study Based on China and Selected Asian Economies," SAGE Open, , vol. 11(3), pages 21582440211, July.
    3. World Bank, 2005. "Financing Information and Communication Infrastructure Needs in the Developing World : Public and Private Roles," World Bank Publications - Books, The World Bank Group, number 7491, December.
    4. Haghshenas, Mohammad & Kasimin, Hasmiah & Berma, Madeline, 2013. "Information and Communication Technology (ICT) and Economic Growth in Iran: Causality Analysis," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(2), pages 55-68.
    5. Zagorchev, Andrey & Vasconcellos, Geraldo & Bae, Youngsoo, 2011. "Financial development, technology, growth and performance: Evidence from the accession to the EU," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 21(5), pages 743-759.
    6. Siope Vakataki ‘Ofa, 2021. "Estimating the effects of Internet exchange points on fixed-broadband speed and latency," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 28(2), pages 39-68, December.
    7. Elena Toader & Bogdan Narcis Firtescu & Angela Roman & Sorin Gabriel Anton, 2018. "Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries," Sustainability, MDPI, vol. 10(10), pages 1-22, October.
    8. World Bank, 2007. "Building Knowledge Economies : Advanced Strategies for Development," World Bank Publications - Books, The World Bank Group, number 6853, December.
    9. Cuberes, David, 2008. "The Diffusion of Internet: A Cross-Country Analysis," MPRA Paper 8433, University Library of Munich, Germany.
    10. Nauro F. Campos, 2010. "The Impact of Information and Communication Technologies on Economic Growth in Latin America in Comparative Perspective," Chapters, in: Mario Cimoli & André A. Hofman & Nanno Mulder (ed.), Innovation and Economic Development, chapter 6, Edward Elgar Publishing.

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