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Do poor countries really need more IT ? the role of relative prices and industrial composition

Maya Eden () and Paul Gaggl ()

No 7352, Policy Research Working Paper Series from The World Bank

Abstract: Conventional wisdom suggests too little information and communication technologies (ICT) in poor countries. Indeed, within 70 countries at various levels of development, there is a positive relationship between income per capita and the capital share of ICT. While this regularity is consistent with explanations based on technology adoption lags and ICT-labor substitutability, there is little empirical support for these hypotheses. Instead, the paper establishes that this regularity can be fully accounted for by (a) relatively higher ICT prices in low-income countries and (b) industrial composition.

Keywords: E-Business; Knowledge Economy; Economic Theory&Research; Investment and Investment Climate; Information and Communication Technologies (search for similar items in EconPapers)
Date: 2015-06-30
New Economics Papers: this item is included in nep-ict and nep-ino
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