Digital Divide and International Orientation:Evidence From Asia-Pacific Countries

Kaushalesh Lal and Shampa Paul

The IUP Journal of Applied Economics, 2004, vol. III, issue 2, 31-41

Abstract: The paper aims at identifying and analysing the factors that have resulted in a digital divide in the Asia-Pacific countries. Several indicators can be used as a proxy of the digital divide. In this study, however, we have used computer density as a measure of the digital divide. The country-specific variables that have been used in the analysis are: GDP per capita, FDI, telephone density, exports, and human capital. The study uses panel data of 10 countries from 1992 to 1999. The results show that the major factors that have influenced the digital divide are: FDI, openness of economy, telecommunication density, and human capital. The findings of the study suggest that greater integration of an economy with the world economy is likely to have a significant impact on the narrowing down of the digital divide. The study finds evidence of the pivotal role played by communication infrastructure in the penetration of computers.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjae:v:03:y:2004:i:2:p:31-41

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