This study used an absolute and conditional convergence model to analyze the effects of information and communication infrastructure on income convergence and decision making in 16 domestic provinces and metro-cities. The analysis of IT(Information & Technology) infrastructures is focused on telecommunication equipment investment, Internet penetration rate, and computer penetration rate. As a result, it is analyzed that there is some positive relationship between the construction of ICT infrastructure and the rate of income convergence in the region. Specifically, the largest contributor to regional convergence was the gross value added in the region (with a convergence rate of up to 8.2%). The adverse impacts on convergence speed were telecom equipment investment, and internet penetration rate and computer penetration rate had a positive effect on convergence rate (0.3% p, 0.2% p increase respectively). Finally, analysis of determinants of regional incomes showed that telecommunication equipment investment showed a negative relationship with regional economic growth, while internet penetration rate and computer penetration rate showed positive (+) relationship. It is expected that this study will be used as a basic data of regional communication policy since it can grasp the mutual influence between telecommunication equipment investment and regional economic growth.
KSP Keywords
Basic data, Convergence model, Convergence rate, ICT Infrastructure, Information and communication, Internet penetration, Mutual Influence, Penetration rate, Value added, communication infrastructure, convergence speed
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