Paper
Internet Diffusion and Electronic Commerce: Prospects for Developing Countries
Bridging the digital divide
15 pages
Expressing concern that the underdeveloped nations may get left behind in adopting Information Technology, this paper explores the following questions:
- Can developing-country businesses use this new resource effectively?
- Will the Net level the competitive playing field, or the converse?
- How will the Net affect absolute and relative income growth in rich and poor countries?
- How can policies promote more effective use of the Net by developing-country businesses?
The paper:
- Highlights the impact of policy reform on the growth of Internet use and discusses its probable impact on developing-country households and businesses, and conditions for firms' effective use of the Net;
- Considers the partial equilibrium impact of falling information and communications costs, along with the longer-run general equilibrium impact of this new technology;
- Discusses the likely impacts of Net expansion on more general patterns of development;
- Concludes by attempting to answer the four questions posed.
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