The new economy and developing countries : assessing the role of ICT diffusion

Abstract

Using data from developing countries, this paper explores the nature and direction of the links between ICT diffusion and per capita income, trade and financial indicators, education, and freedom indicators. Internet hosts, Internet users, personal computers and mobile phones represent indicators of ICT. The Gompertz model of technology diffusion is used to study ICT dissemination. The results show that income and government trade policies influence ICT diffusion. Depending on the ICT indicator, freedom indices may or may not affect ICT diffusion. Moreover, only personal computers and Internet hosts seem to have a positive influence on income. Contrary to expectations, ICT diffusion does not seem to enhance education.