Understanding the Evolving Digital Divide
Poor countries are not catching up with the rich, and to some extent the income distribution is becoming polarized. Countries do converge to their own steady states, but at an uncertain rate. One reason for this uncertainty is that countries catch up by adopting technologies from abroad, as weil as by investing in physical capital and education. It is easy to envisage a hypothetical long-run equilibrium in which countries grow at the same rate, but over the last thirty years, rates of efficiency growth have almost certainly varied widely (Temple 1999: 151).
KeywordsJoint Venture Digital Divide Mobile Telephony Application Sector Optimal Investment Strategy
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