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Today’s Presentation
How ICTs Drive Developing Country Economic Growth How the ITA Benefits Developing Countries
- Modeling Economic and Tariff Impact of ITA Accession
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How Joining the ITA Spurs Economic Growth in Developing Nations - - PowerPoint PPT Presentation
How Joining the ITA Spurs Economic Growth in Developing Nations - - PowerPoint PPT Presentation
How Joining the ITA Spurs Economic Growth in Developing Nations Stephen Ezell Vice President, Global Innovation Policy Information Technology and Innovation Foundation June 5, 2017 @ITIFdc Todays Presentation How ICTs Drive Developing
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- ICTs have been responsible for 25% of Kenya’s economic growth since 2000.
- ICT usage accounted for 25% of the increase in Chinese GDP growth from
2000-2007, and 40% of TFP growth.
- “ICTs contributed approximately one-quarter of GDP growth in many developing
countries from 2000-2010.” – Richard Heeks, Oxford University
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ICTs Strongest Growth Drivers in Developing Countries
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ICTs Are A Key Driver of Productivity and Innovation
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ICT is “super capital” which has a much larger impact on productivity than other forms
- f capital.
- ICT capital has up to 7 times
more impact on firm productivity than non-ICT capital.
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It’s Better To “Eat” Than “Cook” the Tech
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- Over 80% of the economic benefits from ICT are related to its use by
- rganizations and consumers, rather than its production by tech firms.
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How Joining the ITA Spurs Growth in Developing Nations
- 1. Supports ICT Services Sectors and Exports
- 2. Spurs Participation in ICT Global Value Chains
- 3. Empowers Domestic Manufacturers
- 4. Boosts Countries’ Economic Growth
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ITA Facilitates ICT Services Industry and Exports
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ICT Services Exports as Percentage of Total Services Exports
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Philippines India Costa Rica Indonesia China 2000 2015
Source: World Bank
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ITA Facilitates Participation in ICT GVCs
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ICT Exports as Percentage of Total Goods Exports, 2014
0% 5% 10% 15% 20% 25% 30% 35% 40% Source: World Bank
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ITA Facilitates Participation in ICT GVCs
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Membership and Participation in ICT GVCs
Source: OECD, Implications of Global Value Chains for Trade, Investment, Development, and Jobs, 2013
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Benefits Producers Using ICTs as Inputs for Mfg. Goods
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- E.g., Over 50% of semiconductors imported into China are
inputs into re-exported products.
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How Joining the ITA Spurs Growth in Developing Nations
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Chile South Africa Argentina Kenya Cambodia Pakistan
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Conceptual Framework of Economic Model
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Economic Growth After 10 Years of ITA Membership
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Source: ITIF, How Joining the Information Technology Agreement Spurs Economic Growth in Developing Nations
1.52% 1.30% 1.29% 0.98% 0.23% 0.17%
0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% Argentina Pakistan Kenya Cambodia Chile South Africa
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Recovery of Foregone Tariffs After 10 Years
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Source: ITIF, How Joining the Information Technology Agreement Spurs Economic Growth in Developing Nations
133% 109% 92% 75% 67% 23%
0% 20% 40% 60% 80% 100% 120% 140% Argentina Kenya South Africa Pakistan Chile Cambodia
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