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A Conceptual Model and Methodology for Evaluating E-Infrastructure Deployment and Its Application to OECD and MENA Countries

Author

Listed:
  • Baseem Al-Athwari

    (Technology Management, Economcis, and Policy Program; College of Engineering; Seoul National University)

  • Jorn Altmann

    (Technology Management, Economcis, and Policy Program; College of Engineering; Seoul National University)

  • Almas Heshmati

    (Department of Economics, Sogang University)

Abstract

As information and communication technologies have spread throughout the world, countries have realized the importance of investing more and more in building ICT-relevant infrastructure. However, for fostering further information and communication technology (ICT) development, countries are in need of an analysis tool for measuring their advancement in ICT-relevant infrastructure. Motivated by a variety of attempts to generate measures of ICT development, this study aims to develop an index that quantifies the level of ICT-relevant (e-infrastructure) deployment. In particular, this study introduces two e-infrastructure indices that are composed of six components, namely electricity, telecommunication, Internet, processing power, broadcasting, and human capital. Each component is generated from one or more indicators. This composition provides the possibility of tracking each of them separately and to identify strengths and weaknesses of each country with respect to the ICT-relevant area of the component. It will also help pointing out the source of failure in developing the ICT-related infrastructure and to develop policies for enhancing ICT-related infrastructure accordingly. For the index computation, the study uses a parametric and a non-parametric computation method rather than the traditional approaches which are frequently used in literature. In addition to this, this study also aims at analyzing the indices ranking differences among OECD countries and Middle East & North Africa (MENA) countries, using data for the time period between 2000 and 2007. The ranking of the countries shows that MENA and OECD countries differ significantly in their e-infrastructure development. However, a small group of MENA countries are ranked higher than a few OECD countries. Those countries belong to the Gulf Cooperation Council (GCC).

Suggested Citation

  • Baseem Al-Athwari & Jorn Altmann & Almas Heshmati, 2013. "A Conceptual Model and Methodology for Evaluating E-Infrastructure Deployment and Its Application to OECD and MENA Countries," TEMEP Discussion Papers 2013102, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2013.
    • Handle: RePEc:snv:dp2009:2013102
    as

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    References listed on IDEAS

    as
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    5. Andersen, Torben M. & Herbertsson, Tryggvi Thor, 2003. "Measuring Globalization," IZA Discussion Papers 817, Institute of Labor Economics (IZA).
    6. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    7. Almas Heshmati & JongEun Oh, 2006. "Alternative Composite Lisbon Development Strategy Indices: A Comparison of EU, USA, Japan and Korea," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(2), pages 131-170, December.
    8. Kang, Sang Mok, 2002. "A sensitivity analysis of the Korean composite environmental index," Ecological Economics, Elsevier, vol. 43(2-3), pages 159-174, December.
    9. Farhad Noorbakhsh, 1998. "The human development index: some technical issues and alternative indices," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(5), pages 589-605.
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    More about this item

    Keywords

    ICT Infrastructure; Indices; E-readiness; Composite Index; Principle Component Analysis; MENA; OECD.;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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