International ICT Spillover

Abstract

Recent developments in information and communication technology (ICT) have affected all economic activities across the world. Although there is ample evidence for the direct impact of ICT on productivity, the spillover effect of ICT has so far not been sufficiently investigated, especially in the international context. This chapter discusses ICT and its spillover effects on labor productivity using an empirical growth model and panel data for 69 countries over the period 1992-2006. The results show that ICT and its spillover have positive impacts on productivity worldwide, but the effects are much stronger in developed countries than those in the less developed countries.