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on Information and Communication Technologies |
| By: | Menzie D. Chinn; Robert W. Fairlie |
| Abstract: | Computer and Internet use, especially in developing countries, has expanded rapidly in recent years. Even in light of this expansion in technology adoption rates, penetration rates differ markedly between developed and developing countries and across developing countries. To identify the determinants of cross-country disparities in personal computer and Internet penetration, both currently and over time, we examine panel data for 161 countries over the 1999-2004 period. We explore the role of a comprehensive set of economic, demographic, infrastructure, institutional and financial factors in contributing to the global digital divide. We find evidence indicating that income, human capital, the youth dependency ratio, telephone density, legal quality and banking sector development are associated with technology penetration rates. Overall, the factors associated with computer and Internet penetration do not differ substantially between developed and developing countries. Estimates from Blinder-Oaxaca decompositions reveal that the main factors responsible for low rates of technology penetration rates in developing countries are disparities in income, telephone density, legal quality and human capital. In terms of dynamics, our results indicate fairly rapid reversion to long run equilibrium for Internet use, and somewhat slower reversion for computer use, particularly in developed economies. Financial development, either measured as bank lending or the value of stocks traded, is also important to the growth rate of Internet use. |
| JEL: | O30 L96 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12382&r=ict |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics); Edquist, Harald (SNS) |
| Abstract: | This study consists of an examination of productivity growth following three major technological breakthroughs: the steam power revolution, electrification and the ICT revolution. The distinction between sectors producing and sectors using the new technology is emphasized. A major finding for all breakthroughs is that there is a long lag from the time of the original invention until a substantial increase in the rate of productivity growth can be observed. There is also strong evidence of rapid price decreases for steam engines, electricity, electric motors and ICT products. However, there is no persuasive direct evidence that the steam engine producing industry and electric machinery had particularly high productivity growth rates. For the ICT revolution the highest productivity growth rates are found in the ICT-producing industries. We suggest that one explanation could be that hedonic price indexes are not used for the steam engine and the electric motor. Still, it is likely that the rate of technological development has been much more rapid during the ICT revolution compared to any of the previous breakthroughs. |
| Keywords: | Electrification; General purpose technologies; ICT revolution; Productivity growth; Steam power |
| JEL: | N10 O10 O14 O40 |
| Date: | 2006–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0665&r=ict |
| By: | Stephen Machin (University College London, CEE, CEP, London School of Economics and IZA Bonn); Sandra McNally (CEE, CEP, London School of Economics and IZA Bonn); Olmo Silva (CEE, CEP, London School of Economics, European University Institute and IZA Bonn) |
| Abstract: | Despite its high relevance to current policy debates, estimating the causal effect of Information Communication Technology (ICT) investment on educational standards remains fraught with difficulties. In this paper, we exploit a change in the rules governing ICT funding across different school districts of England to devise an instrumental variable strategy to identify the causal impact of ICT expenditure on pupil outcomes. The approach identifies the effect of being a ‘winner’ or a ‘loser’ in the new system of ICT funding allocation to schools. Our findings suggest a positive impact on primary school performance in English and Science, though not for Mathematics. We reconcile our positive results with others in the literature by arguing that it is the joint effect of large increases in ICT funding coupled with a fertile background for making an efficient use of it that led to positive effects of ICT expenditure on educational performance in English primary schools. |
| Keywords: | Information and Communication Technology (ICT), pupil achievement |
| JEL: | H52 I20 I28 J24 |
| Date: | 2006–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp2234&r=ict |