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Information and Communications Technology (ICT) and Spillover: A Panel Analysis

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  • Sang-Yong Tom Lee
  • Xiao Jia Guo

Abstract

The pervasive role of information and communications technology (ICT) in the new economy is well documented. There is now considerable agreement among scholars regarding the ICT contribution to national productivity growth. On the other hand, the production spillover and network externality associated with ICT capital draws its contribution beyond the neoclassical baseline. Many researchers have provided empirical evidence for the correlation between ICT spillover and national productivity. Nevertheless, the ICT spillover in international context is still an unexplored area. Inspired by the belief that ICT bears the features of knowledge capital, we conjecture that ICT-related knowledge spillover could happen in today’s open world economy. We conduct empirical tests on a balance panel of annual data series from a sample of 29 countries over period 1993-2001. The empirical results confirm the existence of international ICT spillover and the pattern of such spillover for two distinguished economic groups. With reference to these findings, policies in regard to promoting knowledge flow and trade openness are discussed for economies to fully reap the benefits of the international ICT spillover effect

Suggested Citation

  • Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society.
  • Handle: RePEc:ecm:feam04:722
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    Keywords

    Information and Communication Technology (ICT); spillover;

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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