Information and Communications Technology (ICT) International Spillovers

As information and communications technology (ICT) involves both traditional capital and knowledge capital, potential spillovers through various mechanisms can occur. Having tried to confirm the existence of ICT spillovers across country borders as Park et al . ( Inf. Syst. Res. , vol. 18, pp. 86-10...

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Bibliographic Details
Published in:IEEE transactions on engineering management 2009-05, Vol.56 (2), p.329-340
Main Authors: Gholami, R., Xiaojia Guo, Higon, M.D.A., Lee, S.-Y.T.
Format: Article
Language:English
Subjects:
Borders
Communications technology
Decisions
Developing countries
Economic development
Economics
Engineering management
Equations
information and communications technology (ICT)
Information technology
international knowledge spillovers
International trade
Internet
Investments
Knowledge engineering
LDCs
Manycountries
network penetration rate
Parks
Penetration
Production
Productivity
Studies
Trade liberalization
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Summary:As information and communications technology (ICT) involves both traditional capital and knowledge capital, potential spillovers through various mechanisms can occur. Having tried to confirm the existence of ICT spillovers across country borders as Park et al . ( Inf. Syst. Res. , vol. 18, pp. 86-102, 2007), we investigate the patterns and mechanisms of international ICT spillovers. We use panel data on 37 countries from 1996 to 2004. We find that developing countries could reap more benefits from ICT spillovers than developed countries. We also find that the higher the Internet penetration rate in recipient countries, the more international ICT spillovers there might exist. Our findings are important for policy decisions regarding national trade liberalization and economic integration. Developing economies that are more open to foreign trade may have an economic advantage and may develop knowledge-intensive activities, which will lead to economic development in the long run.
ISSN:0018-9391
1558-0040
DOI:10.1109/TEM.2009.2016044