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Bridging the Digital Divide 

  • November 2015
  • 31 pages
  • Frost & Sullivan
Report ID: 3419432

Summary

Table of Contents

Introduction

The economic globalization and its interconnectedness have incontestably brought in open new markets, new ideas, and new opportunities This globalization is a unique blend of local and global or glocal, where the process is best defined by the way it recognizes and interconnects various levels such as local, national, regional, and thereafter global Thus, globalization and industrialization contain and create new geographical patterns, set in new manufacturing activities, alter trade patterns, expand export markets, and present new ways of human capital management Additionally, the growth of international trade necessitates rapid urbanization, and the typical urban pull factors have exacerbated the situation of migration Over the past decade, the Internet era has proved to be the most crucial factor in driving globalization and economic growth through lowering economic, social, cultural, and sectorial impediments to communication across countries and regions

Internet Maturity and Economic Development

A positive correlation exists between the high Internet penetration and per capita gross domestic product (GDP) growth in a country Analysis of GDP and Internet penetration data confirms that countries with the highest Internet adoption have the highest GDP levels per capita worldwide With the potentially wide-ranging impact of the Internet and its ability to provide easier access to information to increase efficiency and productivity, the increased use of broadband networks and services has produced positive outcomes throughout a country, particularly involving GDP A frequently cited World Bank study found that emerging countries experienced “about a percentage point increase in GDP for each % increase in (broadband) penetration” from 2000 to 2006 The effect of broadband is higher on emerging economies than the impact of broadband on high-income countries, which “enjoyed a percentage point increase in per capita GDP growth” per % increase in broadband penetration, proving that an increase in Internet adoption and maturity can aid economic development in countries lagging in Internet penetration

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