Cross-country technology diffusion: the case of computers

Abstract

We use data on imports of computer equipment for a large sample of countries between 1970 and 1990 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