A new study shows very strong links between uptake of ICTs and average household incomes in developing countries
To quote the Conclusions
The regression analysis in this paper shows there is a significant relationship between GNI per
capita (in PPP international dollars) and adoption of each ICT (mobile phone, personal computer,
and telephone) with the exception of Internet technology. This study suggests that an increase in
the adoption of mobile phone, personal computer, and fixed-line telephone by one percent will
bring about an increase in average income per person in lower-middle-income and low-income
developing countries by approximately 2.8%, 4.1%, and 6.3% respectively. The absence of a
significant relationship for Internet technology may be the result of an absence of a critical mass
in Internet adoption and usage. This warrants further investigation with a more robust analytical
model.
Developing countries face challenges when harnessing ICTs potential for economic development.
Many of these countries have been pledged with resources shortage and constraint that they opted
for wireless technologies instead of traditional fixed-line solution as a quicker and less costly way
of building a telecommunication infrastructure in an attempt to catch up in economic development
with more developed countries. However, economic development benefits would not be quickly
accrued to developing countries in such a move. These countries are likely to take a considerable
period of time in building their capabilities to absorb, master, use, and innovate new
technologies. Nevertheless, this process may be expedited by the deliberate policies and guidance
from government in these countries, with support from the international arena. At the same
time, government in these countries must constantly reassess the impact of policies and align
them with the social objectives so as to remain user-focused in the need to harness the technology
quickly.
The report is available at
http://iisit.org/Vol6/IISITv6p471-478Fong597.pdf
To quote the Conclusions
The regression analysis in this paper shows there is a significant relationship between GNI per
capita (in PPP international dollars) and adoption of each ICT (mobile phone, personal computer,
and telephone) with the exception of Internet technology. This study suggests that an increase in
the adoption of mobile phone, personal computer, and fixed-line telephone by one percent will
bring about an increase in average income per person in lower-middle-income and low-income
developing countries by approximately 2.8%, 4.1%, and 6.3% respectively. The absence of a
significant relationship for Internet technology may be the result of an absence of a critical mass
in Internet adoption and usage. This warrants further investigation with a more robust analytical
model.
Developing countries face challenges when harnessing ICTs potential for economic development.
Many of these countries have been pledged with resources shortage and constraint that they opted
for wireless technologies instead of traditional fixed-line solution as a quicker and less costly way
of building a telecommunication infrastructure in an attempt to catch up in economic development
with more developed countries. However, economic development benefits would not be quickly
accrued to developing countries in such a move. These countries are likely to take a considerable
period of time in building their capabilities to absorb, master, use, and innovate new
technologies. Nevertheless, this process may be expedited by the deliberate policies and guidance
from government in these countries, with support from the international arena. At the same
time, government in these countries must constantly reassess the impact of policies and align
them with the social objectives so as to remain user-focused in the need to harness the technology
quickly.
The report is available at
http://iisit.org/Vol6/IISITv6p471-478Fong597.pdf
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