An Inquiry Into the Economic Effects of Information Technology on International Development and Globalization

The impact of information technology (IT) on globalization of the world market is assumed to have a dual economic effect. From the micro-economic standpoint, an integrative business model has been proposed using qualitative and quantitative frameworks, and several constraints have been found necessary for long-run price stability for a dynamically stable “virtual” market equilibrium. From the macro-economic viewpoint, IT's positive contribution to economic growth has been quantitatively analyzed using a simple Neoclassical growth model, and the impact of information technology have been shown to yield multiplicative efficiency & scale effects, and an additive capital utilization effect, on sustainable economic growth