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ZEF Discussion Papers on Devlopment Policy 7
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Bog'liq zef dp07ZEF Discussion Papers on Devlopment Policy 7
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First, there are relatively few studies that examine how ICTs affect the productivity of
firms in developing countries. In addition to productivity, a more comprehensive analysis of the
manner in which these technologies affect other outcomes such as product development and
product quality is required. A clear demonstration of the benefits associated with the use of ICTs
may provide firms with the motivation required to invest in these technologies.
Second, the argument that the use of these technologies reduces transaction costs and thus
promotes the spread of markets is largely unverified. While anecdotal evidence is available,
there is limited empirical work that links the diffusion of these technologies to the increased
efficiency and spread of markets. Similarly, the issue of whether the diffusion of these
technologies promotes institutional change is still unclear.
Third, it is often asserted that the use of these technologies and the benefits they confer
are limited to a minority of households. Thus, their spread may exacerbate informational and
income inequalities. While a number of studies have examined the effects of ICTs on household
welfare, there is only relatively weak evidence regarding the issue of whether and, if so, in what
way household welfare varies according to income or poverty levels. Further work should focus
on who uses these technologies and how the benefits generated by their use are distributed. In
order to ascertain whether it is true that the diffusion of these technologies exacerbates income
inequality, it will be necessary to conduct detailed studies of these technologies’ effects on the
internal organization of firms, hiring patterns and the skill-mix of employees. Additionally,
labor market surveys may be used to analyze the effects of ICTs on individual wages and
employment patterns. Studies that address these distributional concerns and the impact of these
technologies on the poor are needed to inform the debate over the worthiness of additional
investments in information and communication technologies.
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