Externality effects of information and communication technologies across country Borders

Roya Gholami, Xiao J. Guo, Dolores Añón Higón, Sang-Yong T. Lee

Research output: Working paper

Abstract

As information and communications technology (ICT) involves both traditional capital and knowledge capital, potential spillovers through various mechanisms can occur. We posit that ICT capital may boost productivity growth, not only in the home country, but also in other countries. In this paper, we provide empirical evidence of such spillovers using panel data on 37 countries from 1996 to 2004. Our results support the existence of ICT spillovers across country borders. Furthermore, we find that developing countries could reap more benefits from ICT spillovers than developed countries. This is particularly 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.
Original languageEnglish
Place of PublicationBirmingham (UK)
PublisherAston University
ISBN (Print)978-1-85449-707-9
Publication statusPublished - Jun 2007

Publication series

NameAston Business School research papers
PublisherAston University
No.RP0717

Fingerprint

Information and communication technology
Externalities
Spillover
Technology spillovers
Trade liberalization
Foreign trade
Knowledge capital
Empirical evidence
Developed countries
Productivity growth
Panel data
Economic development
Developing countries
Economic integration
Economics
Home country
Developing economies

Keywords

  • information and communications technology
  • international knowledge

Cite this

Gholami, R., Guo, X. J., Añón Higón, D., & Lee, S-Y. T. (2007). Externality effects of information and communication technologies across country Borders. (Aston Business School research papers; No. RP0717). Birmingham (UK): Aston University.
Gholami, Roya ; Guo, Xiao J. ; Añón Higón, Dolores ; Lee, Sang-Yong T. / Externality effects of information and communication technologies across country Borders. Birmingham (UK) : Aston University, 2007. (Aston Business School research papers; RP0717).
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Gholami, R, Guo, XJ, Añón Higón, D & Lee, S-YT 2007 'Externality effects of information and communication technologies across country Borders' Aston Business School research papers, no. RP0717, Aston University, Birmingham (UK).

Externality effects of information and communication technologies across country Borders. / Gholami, Roya; Guo, Xiao J.; Añón Higón, Dolores; Lee, Sang-Yong T.

Birmingham (UK) : Aston University, 2007. (Aston Business School research papers; No. RP0717).

Research output: Working paper

TY - UNPB

T1 - Externality effects of information and communication technologies across country Borders

AU - Gholami, Roya

AU - Guo, Xiao J.

AU - Añón Higón, Dolores

AU - Lee, Sang-Yong T.

PY - 2007/6

Y1 - 2007/6

N2 - As information and communications technology (ICT) involves both traditional capital and knowledge capital, potential spillovers through various mechanisms can occur. We posit that ICT capital may boost productivity growth, not only in the home country, but also in other countries. In this paper, we provide empirical evidence of such spillovers using panel data on 37 countries from 1996 to 2004. Our results support the existence of ICT spillovers across country borders. Furthermore, we find that developing countries could reap more benefits from ICT spillovers than developed countries. This is particularly 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.

AB - As information and communications technology (ICT) involves both traditional capital and knowledge capital, potential spillovers through various mechanisms can occur. We posit that ICT capital may boost productivity growth, not only in the home country, but also in other countries. In this paper, we provide empirical evidence of such spillovers using panel data on 37 countries from 1996 to 2004. Our results support the existence of ICT spillovers across country borders. Furthermore, we find that developing countries could reap more benefits from ICT spillovers than developed countries. This is particularly 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.

KW - information and communications technology

KW - international knowledge

M3 - Working paper

SN - 978-1-85449-707-9

T3 - Aston Business School research papers

BT - Externality effects of information and communication technologies across country Borders

PB - Aston University

CY - Birmingham (UK)

ER -

Gholami R, Guo XJ, Añón Higón D, Lee S-YT. Externality effects of information and communication technologies across country Borders. Birmingham (UK): Aston University. 2007 Jun. (Aston Business School research papers; RP0717).