{
  "title": "Financial Development, the Structure of Capital Markets, and the Global Digital Divide",
  "publication": "IMF Working Papers, November 1, 2006",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-development-the-structure-of-capital-markets-and-the-global-digital-divide-19924",
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  "summary": "This paper examines the role of financial development and financial structure in explaining cross-country diffusion of information communication technology (ICT).",
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    {
      "heading": "Summary and central findings",
      "content": "- The paper examines the role of financial development and financial structure in explaining cross-country diffusion of information communication technology (ICT).\n- Using panel data for 76 emerging and advanced countries for the period 1990-2003, the paper finds that credit and stock market development tends to foster ICT development.\n- Financial structure, however, does not appear to have any significant relationship with ICT development.\n- The conclusions highlight the role of financial development in the market for knowledge-based products and are consistent with theoretical predictions.\n- The finding that financial development is an important determinant of ICT development implies that countries with underdeveloped financial markets may continue to lag behind in the use of ICT."
    },
    {
      "heading": "Methodology and data",
      "content": "- Empirical approach: panel data analysis.\n- Sample coverage: 76 emerging and advanced countries.\n- Time period: 1990-2003.\n- Dependent variable: ICT development / ICT diffusion (panel ICT model)."
    },
    {
      "heading": "Policy implications and interpretation",
      "content": "- Strengthening credit markets and stock market development is associated with greater ICT development.\n- Policies aimed at advancing financial development can support diffusion of knowledge-based products such as ICT.\n- Because financial structure shows no significant relationship with ICT development in this analysis, policy focus should remain on overall financial development rather than on altering financial structure as a primary mechanism for accelerating ICT diffusion.\n- Countries with underdeveloped financial markets face a risk of continued lagging in ICT adoption.\n\n---\n\n Content in this bundle\n\n- wp06258\n  - wp06258 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp06258 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/financial-development-the-structure-of-capital-markets-and-the-global-digital-divide-19924"
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    "Authors: Charles Amo Yartey",
    "Published: November 1, 2006",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451865189.001",
    "The paper examines the role of financial development and financial structure in explaining cross-country diffusion of information communication technology (ICT).",
    "Using panel data for 76 emerging and advanced countries for the period 1990-2003, the paper finds that credit and stock market development tends to foster ICT development.",
    "Financial structure, however, does not appear to have any significant relationship with ICT development.",
    "The conclusions highlight the role of financial development in the market for knowledge-based products and are consistent with theoretical predictions.",
    "The finding that financial development is an important determinant of ICT development implies that countries with underdeveloped financial markets may continue to lag behind in the use of ICT.",
    "Empirical approach: panel data analysis.",
    "Sample coverage: 76 emerging and advanced countries.",
    "Time period: 1990-2003.",
    "Dependent variable: ICT development / ICT diffusion (panel ICT model).",
    "Strengthening credit markets and stock market development is associated with greater ICT development.",
    "Policies aimed at advancing financial development can support diffusion of knowledge-based products such as ICT.",
    "Because financial structure shows no significant relationship with ICT development in this analysis, policy focus should remain on overall financial development rather than on altering financial structure as a primary mechanism for accelerating ICT diffusion.",
    "Countries with underdeveloped financial markets face a risk of continued lagging in ICT adoption.",
    "**_wp06258**"
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