Abstract
Information Technology (IT) has revolutionized the world economy in the past few decades by practically changing the economic activities globally. Given its applicability in various manufacturing and services sectors, IT has significantly affected the economy by providing information and development content on products and processes. Accordingly, faster rates of output and productivity growth have become the trends of information processing and communications. In the United States (US), the substantial growth in both the Labor Productivity (LP), and the Multi-Factor Productivity (MFP) after 1995 proves the significance of automation. It proves that IT has definitely steered the economical advancement of industrialized nations such as the US and the United Kingdom (UK). Unfortunately the same conclusion can not be reached for developing countries. For instance, India and Ghana have yet to achieve significant economical advancement through the use of IT. To address this issue, we propose: An Economic Development Model Based on IT for Developing Countries (EDM-BITDC). Major components of the EDM-BITDC include, Large Foreign Investments (LFIs), Government policies and support for IT, Social awareness of IT importance, and Efficient use of IT.
EDM-BITDC provides an answer to the concerns of poor nations. It suggests that governments of these nations entice LFIs in the field of IT. Implementation of EDM-BITDC in DC economies is expected to result in tremendous achievement in conformity with what has already been summarized as success stories of US and UK.