Impacts of Information and Communication Technologies on Country Development: Accounting for Area Interrelationships

• Main Authors: KAUFFMAN, Robert J., Kumar, Ajay
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: Country assessment; Development; Economic analysis; E-readiness; ICTs; Index measures; Measurement; Policy-making; Simultaneous equation model; Three-stage least squares; Communication Technology and New Media; Computer Sciences; Growth and Development
• Online Access: https://ink.library.smu.edu.sg/sis_research/2757; https://ink.library.smu.edu.sg/context/sis_research/article/3757/viewcontent/Impact_ICT_Ctry_Devt_2008_av.pdf
• Institution: Singapore Management University

Single-item composite indices gauge ICT readiness at the country level but do not represent the direct impact of ICTs on a country's development. This paper describes a new approach to measuring the macrolevel impacts of ICTs across a range of development areas. The indirect effects of one area on others is taken into consideration by a simultaneous equation model that permits the inclusion of multiple development areas. The model is applied to data pertaining to four development areas in 64 countries: trade flows, agricultural productivity, R&D, and quality of life. ICT readiness is found to have a positive association with trade flows and R&D, but the impact depends on the country's development level. The strengths and limitations of this modeling approach, and the implications of the results, are assessed.