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Government Supports and Technology Adoption: Evidence from Tunisia

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  • Adel Ben Khalifa

    (Tunisian Institute of Competitiveness and Quantitative Studies and University of Carthage)

Abstract

This study investigates the effect of Industrial Upgrading and Modernization Program (IUMP) on the information and communication technology (ICT) adoption in Tunisia. Based on the Industrial Upgrading Survey 2016, we use the matching estimators to estimate the effect of subsidies, granted in the framework of IUMP, on the adoption of three groups of ICT (Software, Hardware and Network communications). Our results show that although the IUMP has a positive impact on the intensity of ICT adoption, the level of adoption remained under that the transition to knowledge economy requires. We also find that investment incentive has reduced the digital gap between developed and backward regions in the adoption of Software and Network communications, by contrast to the case of Hardware, for which the gap has increased.

Suggested Citation

  • Adel Ben Khalifa, 2018. "Government Supports and Technology Adoption: Evidence from Tunisia," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(4), pages 41-70, December.
    • Handle: RePEc:jed:journl:v:43:y:2018:i:4:p:41-70
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    Cited by:

    1. Adel Ben Khalifa, 2022. "Inter- and Intra-firm Diffusion of Technology: the Example of Software, Hardware, and Network Communications Empirical Evidence for Tunisian Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 236-263, March.

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    More about this item

    Keywords

    ICT; Digital Divide; Regional Disparity; Subsidies; Average Treatment Effect; Matching Estimators;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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