Institutions and ICT Adoption
(English)Manuscript (Other academic)
The importance of good economic institutions for fostering economic growth has been established in a number of papers but the empirical relationship between institutions and technology diffusion is less researched. This paper addresses this question by focusing on the empirical relationship between institutions and the diffusion of three of the most influential Internet and Communication Technologies (ICT); cellular, Internet and PC:s. The findings are that economic institutions affect the diffusion of ICT mainly through delaying the time of adoption. Once a country has adopted the technology, economic institutions has a negligible effect on the level of adoption. Some other factors of importance to technology diffusion suggested in the theoretical literature are also tested. Financial and political institutions as well as human capital is correlated to initial adoption while the “appropriateness” of the technologies for a country matters more in later stages of the adoption process. However what turns out to be most decisive for the diffusion process is the maturity of the technology. Studying the dynamics of ICT adoption clearly shows that the more mature the technology is, the less effective are any barriers to technology adoption. The end result is that even if country specific-barriers do not diminish, all countries will nevertheless adopt ICT sooner or later. This maturity effect is much more important in explaining technology diffusion than any institutional effects.
Barriers to technology adoption, Economic Institutions, Technology diffusion
Research subject Economics
IdentifiersURN: urn:nbn:se:su:diva-26957OAI: oai:DiVA.org:su-26957DiVA: diva2:212118