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The Impact of Information Technology on Productivity in Developing Countries

Author

Listed:
  • Ronia Hawash

    (Faculty of Management Technology, The German University in Cairo)

  • Guenter Lang

    (Faculty of Management Technology, The German University in Cairo)

Abstract

The information technology (IT) revolution has resulted in a digital divide evolving between nations that have the skills and capability to absorb these new technologies, and those without. Since developing countries have assumed that the adoption of IT may be their key engine of growth, they have exerted a lot of efforts in an attempt to overcome this digital gap. This study tests whether higher IT adoption results in higher total factor productivity (TFP) growth of developing countries or not, by conducting a panel data regression for 33 developing countries over the period 2002-2006. It also examines the relative importance of IT adoption in comparison to other technological aspects such as: Technology creation, technology transfer, and enhancing individuals’ technological absorptive capacities through higher educational levels. The study concludes that IT adoption and higher educational attainment tend to relatively be the most significant factors affecting TFP growth in developing countries.

Suggested Citation

  • Ronia Hawash & Guenter Lang, 2010. "The Impact of Information Technology on Productivity in Developing Countries," Working Papers 19, The German University in Cairo, Faculty of Management Technology.
    • Handle: RePEc:guc:wpaper:19
    as

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    File URL: http://mgt.guc.edu.eg/wpapers/019hawash_lang2010.pdf
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    References listed on IDEAS

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    Blog mentions

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    1. Going green with ICT in 2012
      by Hannah Ryder in DFID bloggers on 2012-02-03 18:00:00

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    Cited by:

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    More about this item

    Keywords

    Information Technology; Productivity; Digital Divide; Development;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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