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Contribution of Information and Communication Technologies to Growth

  • Christine Zhen-Wei Qiang
  • Alexander Pitt
  • Seth Ayers
Registered author(s):

    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.

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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/15059/277160PAPER0wbwp024.pdf?sequence=1
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    This book is provided by The World Bank in its series World Bank Publications with number 15059 and published in 2004.
    ISBN: 0-8213-5722-0
    Handle: RePEc:wbk:wbpubs:15059
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    Phone: (202) 477-1234
    Web page: https://openknowledge.worldbank.org
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    1. Piatkowski, Marcin, 2002. "The 'New Economy' and Economic Growth in Transition Economies," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    2. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April.
    3. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
    4. James Morsink & Markus Haacker, 2002. "You Say You Want a Revolution; Information Technology and Growth," IMF Working Papers 02/70, International Monetary Fund.
    5. Il Houng Lee & Yougesh Khatri, 2003. "Information Technology and Productivity Growth in Asia," IMF Working Papers 03/15, International Monetary Fund.
    6. Pohjola, M., 2000. "Information Technology and Economic Growth. A Cross-Country Analysis," Research Paper 173, World Institute for Development Economics Research.
    7. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    8. Hargittai, Eszter, 1999. "Weaving the Western Web: explaining differences in Internet connectivity among OECD countries," Telecommunications Policy, Elsevier, vol. 23(10-11), pages 701-718, November.
    9. Meng, Qingxuan & Li, Mingzhi, 2001. "New Economy and ICT Development in China," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    10. Joseph, K.J., 2002. "Growth of ICT and ICT for Development: Realities of the Myths of the Indian Experience," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    11. Gordon, Robert J, 2002. "Technology and Economic Performance in the American Economy," CEPR Discussion Papers 3213, C.E.P.R. Discussion Papers.
    12. Mattoo, Aaditya & Rathindran, Randeep, 2006. "Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
    13. Onyeiwu, Steve, 2002. "Inter-Country Variations in Digital Technology in Africa: Evidence, Determinants, and Policy Applications," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    14. Robert J. Gordon, 2003. "Hi-tech Innovation and Productivity Growth: Does Supply Create Its Own Demand?," NBER Working Papers 9437, National Bureau of Economic Research, Inc.
    15. Wong, Poh-Kam, 2001. "ICT Production and Diffusion in Asia Digital Dividends or Digital Divide?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    16. Dirk Pilat & Frank C. Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD Publishing.
    17. Lee, Young Soo & Oh, Jeonghun & Seo, Hwan-Joo, 2002. "Digital Divide and Growth Gap: A Cumulative Relationship," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    18. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 6.
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