Impact of Institutional Arrangements in the Digitization and Economic Development in Latin America (Impacto De Arreglos Institucionales En La Digitalización Y El Desarrollo Económico De América Latina)

Abstract

The aim of this research is to quantitatively analyze the impact of institutional frameworks defined for the development of ICT public policies has on development of digitization and the economy. The main hypothesis states that certain features of the institutional environment for the development of public ICT policies tend to accelerate the development of digitization, which has an impact on economic growth.

By using econometric analysis the research finds that the presence of a national broadband plan accompanied by institutional change in the management of public ICT policies generates an increase in the rate of digitization of 3.83% in the following year. In turn, as a result of increased digitization, an increase in per capita GDP of between 0.1859% and 0.2426% is generated, depending on the stage of digitization of each country.

Keywords: Digitization, institutional arrangements, ICT, economic development, Latin America

JEL Classification: O17, L96