Determinants of National Informatization: A Cross-country Analysis
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As the current manifestation of the ongoing sequence of technological revolutions, ICT can be seen as the key factor driving economic growth in the present-day industrial societies. This paper investigates the major factors of the information society measured by ICT-related expenditure per capita in GDP. Using the panel data on 50 countries during 1992-2001 periods, this article reviews what is known about the determinants of the ICT expenditure figures and takes it as a proxy measure for the informatization across countries. Models were estimated to explore determinants using a cross-country analysis. Consistent with previous literatures, the results show that per capita income and ICT-related infrastructures were two robust explanators. Moreover, human capital investment significantly contributes to the national informatization in developing world. Openness to foreign trade should also be an important determinant as if the statistical analysis performed in the paper did give any statistical support. Consequently, to be able to take actions to bridge the digital divide or to eradicate information poverty, overall results in the paper can be helpful for policy-makers to establish the promising policies concerning national informatization.
Abstract
As the current manifestation of the ongoing sequence of technological revolutions, ICT can be seen as the key factor driving economic growth in the present-day industrial societies. This paper investigates the major factors of the information society measured by ICT-related expenditure per capita in GDP. Using the panel data on 50 countries during 1992-2001 periods, this article reviews what is known about the determinants of the ICT expenditure figures and takes it as a proxy measure for the informatization across countries. Models were estimated to explore determinants using a cross-country analysis. Consistent with previous literatures, the results show that per capita income and ICT-related infrastructures were two robust explanators. Moreover, human capital investment significantly contributes to the national informatization in developing world. Openness to foreign trade should also be an important determinant as if the statistical analysis performed in the paper did give any statistical support. Consequently, to be able to take actions to bridge the digital divide or to eradicate information poverty, overall results in the paper can be helpful for policy-makers to establish the promising policies concerning national informatization.