Zhen-Wei Qiang, ChristinePitt, AlexanderAyers, Seth2013-08-142013-08-1420040-8213-5722-0https://hdl.handle.net/10986/15059Thee worldwide development of information and communication technology (ICT) has accelerated dramatically over the past decade. Increased ICT production and use has the potential to influence economic growth positively. This paper focuses on the linkage between ICT and output growth and summarizes the findings in the literature on the contribution of ICT to economic growth arising from capital deepening and increases in total factor productivity. It looks at the methodologies used to assess the magnitude of the different channels through which ICT influences productivity growth, summarizes the key factors that increase and obstruct ICT expansion, and outlines the challenges developing countries face in maximizing ICT's contribution to growth. Strengthening institutions to create an environment that attracts ICT investment and promotes ICT use; exploiting network and spillover effects by creating domestic demand; and promoting "adaptation close to use" to match local capacity and local needs have been identified as policies to surmount these challenges.en-USCC BY 3.0 IGOINFORMATIONCOMMUNICATIONECONOMIC GROWTHTECHNOLOGYMETHODOLOGYPRODUCTIVITY GROWTHLABOR PRODUCTIVITYCOMPUTERSSOFTWARE INDUSTRYECONOMIC DEVELOPMENTTECHNOLOGICAL INFORMATIONWELFARE DISTRIBUTIONSKILLED WORKERS ADMINISTRATIVE PROCEDURESANNUAL GROWTHBALANCED ECONOMIC GROWTHCAPITAL INVESTMENTCAPITAL STOCKCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSUMER SURPLUSCONSUMERSCOPYRIGHTDEFLATORSDEVELOPED COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT STRATEGYDIGITAL DIVIDEECONOMIC ANALYSISECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OPPORTUNITIESECONOMIC SECTORSEFFECTIVE USEEMPLOYMENTEXCESS PROFITSEXPENDITURESEXPORTSEXTERNALITIESFACTORS OF PRODUCTIONFOREIGN DIRECT INVESTMENTGDPGDP PER CAPITAGICTGLOBAL ECONOMYGNPGROSS DOMESTIC PRODUCTGROSS EARNINGSGROSS NATIONAL PRODUCTGROWTH ACCOUNTINGGROWTH POLICYGROWTH RATEGROWTH RATESHUMAN CAPITALICTINCOMEINCREASING RETURNSINCREASING RETURNS TO SCALEINFORMATION & COMMUNICATION TECHNOLOGYINFORMATION & COMMUNICATION TECHNOLOGY SECTORINFORMATION SYSTEMSINFORMATION TECHNOLOGYINTERNET HOSTSLABOR FORCELABOR PRODUCTIVITYMARGINAL COSTMARKET SHARENETWORKSOPPORTUNITY COSTSPERFECT COMPETITIONPOLICY DECISIONSPOLITICAL ECONOMYPRODUCERSPRODUCTIVE RESOURCESPRODUCTIVITYPRODUCTIVITY GROWTHRADIOREGRESSION ANALYSISRELATIVE PRICESRURAL COMMUNITIESSAVINGSSOFTWARE INDUSTRYTECHNICAL STANDARDSTECHNOLOGICAL ADVANCESTECHNOLOGICAL PROGRESSTECHNOLOGY ADOPTIONTELECOMMUNICATIONSTELEPHONYTELEVISIONTERMS OF TRADETEXTTFPTOTAL FACTOR PRODUCTIVITYTRANSITION ECONOMIESWAGESWELFARE GAINSWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/0-8213-5722-0