Broadband and Contributions to Economic Growth: The U.S. Experience and Future Direction
31 Pages Posted: 12 Jan 2010
Date Written: August 1, 2008
There are many ways of examining how broadband relates to economic development. One that comes to mind is a country‘s global competitiveness. An index for measuring such competitiveness, the Global Competitiveness Index, ranks business competitiveness across 127 countries with the U.S. ranked first in 2007-2008 (Schwab and Porter 2007). The index‘s treatment of competitiveness is not confined to technology: technological readiness is one of 12 attributes (called pillars) of a country‘s relative competitiveness. If we want to better understand the effects of information communications technology (ICT), including broadband, on economic growth and productivity, we might consider the broader context in which ICT is deployed and the conditions under which it has most effectively contributed to economic growth. The measure for economic development, as used in the Global Competitiveness Index, is Gross Domestic Product (GDP) per capita, adjusted for purchasing power parity because it is considered the most comprehensive measure of national economic activity and is strongly correlated to a nation‘s living standard over time (Schwab and Porter 2007).
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