DP2744 Cross-Country Technology Diffusion: The Case of Computers

Author(s): Francesco Caselli , Wilbur John Coleman II

Publication Date: March 2001

Keyword(s): Computers , Diffusion , Human Capital , Knowledge Externalities

JEL(s): E10 , O30 , O40

Programme Areas: International Macroeconomics

Link to this Page: www.cepr.org/pubs/dps/DP2744.asp

We use data on imports of computer equipment for a large sample of countries between 1970-90 to investigate the determinants of computer-technology adoption. We find strong evidence that computer adoption is associated with higher levels of human capital and with manufacturing trade openness vis-à-vis the OECD. We also find evidence that computer adoption is enhanced by high investment rates, good property rights protection, and a small share of agriculture in GDP. Finally, there is some evidence that adoption is reduced by a large share of government in GDP, and increased by a large share of manufacturing. After controlling for the above-mentioned variables, we do not find an independent role for the English- (or European-) language skills of the population.