Chapter 4

The Adoption and Diffusion of ICT Across Countries:  Patterns and Determinants
M. Pohjola (Helsinki School of Economics)

This chapter reviews what is known about the determinants of the cross-country diffusion and adoption of information and communication technology (ICT). Data on ICT equipment and spending are tapped to highlight the differences between countries in the use of the new technology. A simple statistical model is also estimated to identify the most important determinants of the real spending on computer hardware per capita in a panel of 49 countries over the period 1993–2000. The level of income, the relative price of computers, and the stock of human capital are shown to be the most important determinants of computer use. Findings from other studies are also briefly reviewed.