Overcoming the Adverse Effects of Geography: A Cross-Country Analysis of Information and Communication Technology (ICT) Diffusion on Economic Development

Abstract

In the sweeping speed of digital revolution, changes of the landscape of technology may profoundly alter the very nature of place and physical factors, such as access to raw materials and ports. The question of "Does place still matter?" remains unsolved. Thus, using panel data for 93 middle- income countries for the period 1996 to 2008, the paper addresses the question: Does ICT diffusion overcome geographic disadvantages in economic growth? It finds that ICT diffusion does show positive correlations in economic growth for inland and geographic remote countries. These findings may help policy-makers to formulate new spatial-economic policies and ICT investment strategies that may accelerate economic development.