ICT Equipment Investment and Growth in Low- and Lower-Middle-Income Countries

March 1, 2010

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Format: Chicago

Markus Haacker. ICT Equipment Investment and Growth in Low- and Lower-Middle-Income Countries, (USA: International Monetary Fund, 2010) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

While production of ICT equipment plays a subordinate role for economic growth in most of these countries, they do benefit from capital deepening arising from falling prices of ICT equipment. Adapting established growth accounting approaches to the data environment of low-income countries, we quantify the growth impacts of absorption of ICT equipment, finding that ICT-related capital deepening contributed 0.2 percentage points to growth in low-income countries, and 0.3 percentage points in low-middle-income countries. The latter is about half the level typically found for industrialized countries.

Subject: Capital accumulation, Capital productivity, Communications in revenue administration, Information technology in revenue administration, National accounts

Keywords: Capital deepening, Economic growth, ICT equipment, Rate of depreciation, WP

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/066
Stock No:

WPIEA2010066
ISBN:

9781451982107
ISSN:

1018-5941

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