Working Paper: CEPR ID: DP2744
Authors: Francesco Caselli; Wilbur John Coleman II
Abstract: 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.
Keywords: computers; diffusion; human capital; knowledge externalities
JEL Codes: E10; O30; O40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher levels of human capital (J24) | Computer adoption (L63) |
| Manufacturing trade openness (F14) | Computer adoption (L63) |
| Good property rights protection (P14) | Computer adoption (L63) |
| High share of government spending in GDP (H59) | Lower computer adoption (L63) |
| Higher levels of human capital (J24) | Computer investment per worker (E22) |
| Manufacturing trade openness (F14) | Computer investment per worker (E22) |
| Good property rights protection (P14) | Computer investment per worker (E22) |
| High share of government spending in GDP (H59) | Computer investment per worker (E22) |