The rapid globalisation of the information economy has unleashed new pressures for increasing the tradabity of information services. There exists a large gap, however, between the rhetoric of the advocates of free trade in services and their protectionist practices.

This paper reviews the interrelationships between the major forces of telecommunications technology and trade promoting growth in developing countries. The study uses a sample of 93 countries dichotomized in 43 developing and 50 advanced countries using the criterion of per capita income. The...