Gaggl, PaulEden, Maya2015-07-202015-07-202015-06https://hdl.handle.net/10986/22229Conventional wisdom suggests too little information and communication technologies (ICT) in poor countries. Indeed, within 70 countries at various levels of development, there is a positive relationship between income per capita and the capital share of ICT. While this regularity is consistent with explanations based on technology adoption lags and ICT-labor substitutability, there is little empirical support for these hypotheses. Instead, the paper establishes that this regularity can be fully accounted for by (a) relatively higher ICT prices in low-income countries and (b) industrial composition.en-USCC BY 3.0 IGOFINANCIAL SERVICESSOFTWARE INVESTMENTEQUIPMENTCOMMUNICATION TECHNOLOGIESPRODUCTIONLAGSTECHNOLOGY INVESTMENTSTOCKTELECOMMUNICATIONINFORMATION TECHNOLOGYSTRUCTURAL CHANGEINCOMEINTEREST RATEREAL GDPNEXT GENERATIONGDP PER CAPITAINFORMATIONELASTICITYASSETMARGINAL PRODUCTSUBSCRIPTIONSOPTIMIZATIONVARIABLESCONTENTPRICEREAL INCOMEINPUTSRETAIL TRADEPAYMENTSTRENDSCOMPUTEROPEN ACCESSHARDWAREKNOWLEDGEDEVELOPMENTNEW TECHNOLOGIESCOMMUNICATIONSDATA LIMITATIONSDATAMARGINAL PRODUCTSINVESTMENT SPENDINGINFORMATION COMMUNICATION TECHNOLOGYDEVELOPMENT ECONOMICSDATA COMMUNICATIONCOMPUTERSTELECOMMUNICATIONSDOCUMENTINFORMATION AND COMMUNICATION TECHNOLOGIESMANUFACTURING INDUSTRYPRODUCTIVITYMANUSCRIPTDOCUMENTSINTERNATIONAL COMPARISONVENDORWEBCOMMUNICATION SERVICESRESEARCHACCUMULATIONELASTICITY OF SUBSTITUTIONDIVIDENDSINFORMATION COMMUNICATIONNATURAL RESOURCESDATABASESINVENTORYBROADBANDECONOMIC RESEARCHMANUFACTURINGUSERSPHONETECHNOLOGYRDPRODUCTIVITY GROWTHVALUE ADDEDCAPITALWEB HOSTINGCOMPUTER HARDWARESOFTWARERESULTSPCSDESCRIPTIONVALUEBENCHMARKINGREPAIRMACROECONOMICSCUSTOMINDEXAGRICULTUREINDEXESSOCIAL SCIENCEURLMEASUREMENTSHARESAFFILIATED ORGANIZATIONSPAPER DOCUMENTSBENCHMARKINTERNATIONAL TELECOMMUNICATIONOUTPUT PER CAPITAPRODUCTION FUNCTIONCASEINTERNETRESULTECONOMIC DEVELOPMENTTRADEICTGDPGOODSLICENSESGROWTH RATEBUSINESSINVESTMENTNETWORKMACROECONOMIC ANALYSISIDSHARECOMPARATIVE ADVANTAGESUBSCRIPTIONTELECOMAFFILIATEDMISSING VALUESSTANDARDWEBSITECOMMUNICATIONSOFTWARE DEVELOPMENTNEW TECHNOLOGYPRICE INDEXESDATABASECAPITAL INVESTMENTCOMMUNICATION TECHNOLOGYTECHNOLOGIESINTERNATIONAL COMPARISONSMIDDLE INCOME COUNTRIESPRICESUSESDEVELOPMENT POLICYWorking PaperWorld Bank10.1596/1813-9450-7352