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Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2006:7:
Institutions and ICT Adoption

Johan Kiessling ()

Abstract: This paper evaluates the global diffusion process for three ICT technologies: cellular telephony, Internet and personal computers to test the hypothesis that the difference between countries in institutional characteristics significantly affects the time to adoption of these technologies. The analysis shows that the quality of economic and financial institutions and, to a smaller degree political institutions, significantly affects the time to adoption of the studied ICT technologies. The institutional effects were not uniform during all stages of adoption and for all three technologies but the level effects were on average found to be of the same magnitude as those of education and GDP per capita. The results are robust also when controlled for a number of other possible determinants of productivity and growth as well as fixed country effects.

Keywords: Barriers to technology adoption; Institutions; Technology diffusion; (follow links to similar papers)

JEL-Codes: O33; (follow links to similar papers)

41 pages, March 31, 2006, Revised May 3, 2007

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