Information and Communications Technology (ICT) International Spillovers

• Published in: IEEE transactions on engineering management Vol. 56; no. 2; pp. 329 - 340
• Main Authors: Gholami, R., Xiaojia Guo, Higon, M.D.A., Lee, S.-Y.T.
• Format: Journal Article
• Language: English
• Published: New York IEEE 01.05.2009; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• 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
• ISSN: 0018-9391; 1558-0040
• DOI: 10.1109/TEM.2009.2016044

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.