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
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)
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