Modern Communication Technology and Its Economic Impact: A Survey of Research Findings

Abstract

In the last two decades, explosive innovation in Information and Communications Technology (ICT) and rapid expansion of modern communications networks with fixed and mobile broadband access features are changing the way we access, store and transmit information bringing significant efficiency gains in all activities. In this paper we intend to identify the various channels through which ICT is influencing many activities that impact the economy. Empirical findings reviewed in this paper support the role of ICT as an important source of economic growth and productivity with asymmetric effects across industries and sectors. This analysis summarizes the different methodologies explored by various researchers to measure the impact of ICT on the economy by incorporating the spillover effects of ICT into the impact measurement. Impacts of the use of ICT capital and ICT infrastructure on structure of production and input demands are also discussed. This aspect is very important for understanding the consequences of ICT use on aggregate demand for labor, composition of labor skills and type of capital formation.

Keywords: communications, ICT, broadband, infrastructure, marginal benefits, productivity.

JEL Classification: D2, D24, L86, L96, O47