The effect of the Internet on economic growth: Evidence from cross-country panel data

Choi, Changkyu; Yi, Myung Hoon

doi:10.1016/j.econlet.2009.03.028

Cited by 241 publications

(175 citation statements)

References 15 publications

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“…Von Hippel [54] argued that high-speed Internet facilitates involvement in community-lead open source projects. Hence, Choi and Yi [55] suggested that the Internet is presumed to support the spillover effect of knowledge across nations, wielding a positive and significant role in economic growth. Krueger [56] observed that workers who use a computer earn a 10 to 15 percent higher wage rate.…”

Section: The Impact Of Infrastructure and Technology On Sustainable Ecomentioning

confidence: 99%

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Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries

2017

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This study aims at empirically investigating the drivers of sustainable economic growth in EU-28 countries. By means of panel data regression models, in the form of fixed and random effects models, alongside system generalized method of moments, we examine several drivers of real gross domestic product (GDP) growth rate, as follows: higher education, business environment, infrastructure, technology, communications, and media, population lifestyle, and demographic changes. As regards higher education, the empirical results show that expenditure per student in higher education and traditional 18-22 year-old students are positively linked with sustainable economic growth, whereas science and technology graduates negatively influence real GDP growth. In terms of business environment, total expenditure on research and development and employment rates of recent graduates contributes to sustainable development, but corruption perceptions index revealed a negative association with economic growth. As well, the results provide support for a negative influence of infrastructure abreast technological measures on economic growth. Besides, we found a negative connection between old-age dependency ratio and sustainable economic growth.

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Section: The Impact Of Infrastructure and Technology On Sustainable Ecomentioning

confidence: 99%

“…Furter, in line with previous studies [44,55,66], we employ panel data fixed-effects (hereinafter "FE") and random-effects (hereinafter "RE") regressions aiming to explore the link between selected drivers and sustainable economic growth, the general model being depicted below:…”

Section: Econometric Frameworkmentioning

confidence: 99%

Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries

2017

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“…First, less developed regions often have a smaller base economy to begin with. As the Internet disperses to more places, these regions can make greater gains in economic development [1]. Second, Choi [30] has shown that Internet dispersion has effectively shortened the "distance" of remote areas to the marketplace and facilitated trade and foreign direct investment in those areas [31].…”

Section: Introductionmentioning

confidence: 99%

“…While the Internet has contributed to economic growth, it is unclear the extent to which the effect varies by regions. Some studies have shown that Internet penetration has fueled the growth of indigenous economies in less developed areas [1][2][3]. However, other studies have revealed that Internet adoption may have had either a negligible effect on the economy of less-developed countries [4] or even a negative impact on countries with high levels of inequality [5].…”

Section: Introductionmentioning

confidence: 99%

Internet Access, Spillover and Regional Development in China

et al. 2017

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As Internet access grows at different rates across regions, the Internet has had variable effects on regional economies through agglomeration and spillover effects. This paper uses province-level panel data from 2000 to 2013 to study inequality in Internet access, its spatial effect on regional economies in China and the channels through which the spillover effects are most evident. We find that the Internet has dispersed quickly from core cities, such as Beijing and Shanghai, to coastal provinces; and has had increasingly significant effects on neighboring regions. However, the Internet speed is still comparatively low outside the core cities. We then use endogenous growth models to quantify the effect of Internet access on regional economies. Our results show that, while Internet dispersion is positively associated with economic growth, the spillover effect varies significantly by region and is more pronounced in developed regions. So is the effect of the science and technology environment. Developed regions have benefited the most in the process. The three channels of spillover are listed here in order of relative significance: economy, proximity and urbanization. The spillover effect of the Internet may lead to the divergence of regional economies, working against the national goal of reducing regional inequality.

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“…Secondly, the coefficient of education years and population density are both significantly positive as shown in model (2). As expected, it shows that the increase of per capita years of schooling helps to improve the labor productivity.…”

Section: The Empirical Studymentioning

confidence: 61%

Research on the Effect of Internet Development on Labor Productivity

Wang¹

2017

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Abstract. With the implementation of the "Internet plus" strategy, an unprecedented digital revolution is spreading like a storm in China. Based on the panel data of China's 31 provinces from 2003-2014, this paper empirically study the influence of Internet penetration rate on labor productivity, and compares the differences between the eastern, middle and western regions. The results show that the Internet penetration rate has a significant positive impact on the labor productivity. In the long run, assuming other factors stay constant, increasing the Internet penetration rate by one percent increases the labor productivity by about 0.357%, that is, the average annual output of each worker increased about 35.7 yuan. And this positive effect is different between regions, the eastern is the largest, followed by the central, and the western is the minimum. Finally, the paper puts forward some corresponding countermeasures and suggestions on the basis of the empirical analysis.

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The effect of the Internet on economic growth: Evidence from cross-country panel data

Cited by 241 publications

References 15 publications

Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries

Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries

Internet Access, Spillover and Regional Development in China

Research on the Effect of Internet Development on Labor Productivity

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