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ICT and Cross-Country Comparisons: a Proposal of a New Composite Index

  • Isabel Álvarez

    (Universidad Complutense de Madrid, Instituto Complutense de Estudios internacionales)

  • Gerardo Magaña

    (Universidad Complutense de Madrid, Instituto Complutense de Estudios internacionales)

This paper focuses on the use and diffusion of Information and Communication Technologies (ICT) as a mechanism that may reduce the global divide between rich and poor countries. Our main contribution deals with the importance of counting with accurate time-series data and a precise assessment of the components that define ICT indicators at a national level. Thus, a multiple imputation technique is carried out to estimate ICT missing data under the expectation maximization approach. The resulting dataset allows us to propose a more confident estimation of an ICT composite index based on the notion of national capabilities, the called NaCap Index. A distinctive feature of the NaCap is that it attempts to capture countries’ differences on education and structural elements, both determinant factors to attain positive impacts from the use of ICT. The calculation of the Nacap Index for a broad sample of 170 countries and for a time spam from 1991 to 2003 enable us to do cross-country and time comparisons in a more robust manner.

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Paper provided by Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales in its series Working Papers del Instituto Complutense de Estudios Internacionales with number 01/07.

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Length: 31 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:ucm:wpaper:01-07
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  1. Daniele Archibugi & Alberto Coco, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," SPRU Working Paper Series 111, SPRU - Science and Technology Policy Research, University of Sussex.
  2. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD Publishing.
  3. Pohjola, Matti, 2002. "New Economy in Growth and Development," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Kiiski, Sampsa & Pohjola, Matti, 2002. "Cross-country diffusion of the Internet," Information Economics and Policy, Elsevier, vol. 14(2), pages 297-310, June.
  5. Jonathan Temple, 2002. "An Assessment of the New Economy," Bristol Economics Discussion Papers 02/542, Department of Economics, University of Bristol, UK.
  6. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
  7. Menzie D. Chinn & Robert W. Fairlie, 2007. "The determinants of the global digital divide: a cross-country analysis of computer and internet penetration," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 16-44, January.
  8. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  9. Caselli, Francesco & Coleman II, Wilbur John, 2001. "Cross-Country Technology Diffusion: The Case of Computers," CEPR Discussion Papers 2744, C.E.P.R. Discussion Papers.
  10. Jonathan Temple, 2002. "The Assessment: The New Economy," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 241-264.
  11. Karen Eggleston & Robert Jensen & Richard Zeckhauser, 2002. "Information and Communication Technologies, Markets and Economic Development," Discussion Papers Series, Department of Economics, Tufts University 0203, Department of Economics, Tufts University.
  12. Matti Pohjola, 2002. "The New Economy in Growth and Development," Oxford Review of Economic Policy, Oxford University Press, vol. 18(3), pages 380-396.
  13. Archibugi, Daniele & Coco, Alberto, 2005. "Measuring technological capabilities at the country level: A survey and a menu for choice," Research Policy, Elsevier, vol. 34(2), pages 175-194, March.
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