The Macroeconomic Impacts of Information Technology Transfers: Empirical Evidence and Policy Implications

The United Nations has made access to Information and Communication Technology (ICT) a primary objective for the developing world. Several policies have been implemented to transfer technology from the developed to the developing world, specifically to increase Internet access. Unfortunately, there is little direct evidence that Internet usage has a positive impact on national income. This paper investigates the impact of Internet usage on national income using a cross section of 110 countries from 1999 through 2001. The results indicate that national income has a positive impact on the number of Internet users and the number of Internet users has a positive influence on national income. Using a sub-sample of 28 African countries, the empirical results suggest that policies intended to provide exogenous increases in ICT, specifically increased numbers of personal computers, are expected to have limited impacts on national income in the short-run. However, the long-run benefits of these transfers could be positive.

  • Authors: Trisha L. Bezmen and Craig A Depken II
  • Year: 2003
  • Organisation: University of Texas
  • Publisher: n/a
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