The effects of information communication technology on the terms of trade between north-south countries: a structural economic dynamic approach

Information Communication Technology has been identified as a major determinant of international competitiveness between nations in recent years, through increased labor productivity. Depending on the choice of techniques, process innovations may also result in increasing differences in income per capita between developed and underdeveloped countries. Following a structural economic dynamic approach, this paper examines the potential impact of Information Communication Technology on the terms of trade between North-South countries and presents two particular scenarios.