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Transaction Costs, Information Technology and Development

Nirvikar Singh

Development and Comp Systems from University Library of Munich, Germany

Abstract: This paper explores potential channels through which information technology (IT) affects economic development. The channel emphasized here is the reduction of transaction costs through the use of information technology. We discuss the nature of transaction costs, their possible impacts on economic outcomes, and the impacts of IT on transaction costs. We provide a theoretical discussion of how a reduction in transaction costs may affect the number of intermediate goods that are produced, and in turn how that number may affect the development path of the economy. We then draw on our fieldwork in rural India that examined the economics of rural Internet kiosks, and relate this multifaceted case study to the theoretical discussion of transaction costs. We conclude with a broader discussion of the potential impact of IT on developing economies.

Keywords: transaction costs; information technology; Internet; development; India (search for similar items in EconPapers)
JEL-codes: L31 O12 O3 P2 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2004-12-06
New Economics Papers: this item is included in nep-dev
Note: Type of Document - pdf; pages: 30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://econwpa.ub.uni-muenchen.de/econ-wp/dev/papers/0412/0412005.pdf (application/pdf)

Related works:
Journal Article: Transaction costs, information technology and development (2008) Downloads
Working Paper: Transaction Costs, Information Technology and Development (2008) Downloads
Working Paper: Transaction Costs, Information Technology and Development (2004) Downloads
Working Paper: Transaction Costs, Information Technology and Development (2004) Downloads
Working Paper: Transaction Costs, Information Technology and Development (2004) Downloads
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