 ICT development and income Inequality: The moderating role of the entrepreneurial environmentMing-Hsuan Lee, Clarence Yu and Ching-Hsin Kao Telecommunications Policy, 2026, vol. 50, issue 1 Abstract: This study examines the impact of Information and Communication Technology (ICT) development on income inequality, focusing on the moderating role of the entrepreneurial environment. Using panel data for 217 countries from 2000 to 2023, the analysis employs a two-way fixed effects (TWFE) model and Feasible Generalized Least Squares (FGLS). ICT development is measured using internet usage rates and mobile phone subscriptions, while the entrepreneurial environment is captured through government effectiveness, control of corruption, regulatory quality, and the number of days required to start a business. Findings reveal a significant negative relationship between ICT development and income inequality. Notably, this effect is stronger in countries with weaker entrepreneurial environments, suggesting that ICT can serve as a tool of compensatory justice. In such contexts, digital access helps marginalized groups bypass institutional barriers and engage in economic activity. Keywords: ICT development; Income inequality; Entrepreneurial environment; Compensatory justice; Two-way fixed effects model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:50:y:2026:i:1:s0308596125001818 Ordering information: This journal article can be ordered from DOI: 10.1016/j.telpol.2025.103084 Access Statistics for this article Telecommunications Policy is currently edited by Erik Bohlin More articles in Telecommunications Policy from Elsevier |
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