Convergence patterns in global ICT: Fresh insights from a club clustering algorithm

Abstract

Digital provide consists of electronic media, telecommunications, and computer technologies – information and communication technologies (ICTs) availability, accessibility, and utilisation, which simplifies process. The convergence of ICTs ensures efficiency in resources allocation and promotes system growth. This study examines the convergence in global information and communication technologies (ICT) development for 205 countries spanning 2000–2018. We employ the Phillips and Sul econometric methodology, which tests for the existence of convergence clubs and the modelling of different transition paths to convergence. We further disaggregated our panel data into nine regions. We constructed an ICT development index (comprising of mobile line, fixed line, and internet access penetration) via principal component analysis. Our findings suggest the presence of panel convergence at the global and regional levels (except for Sub-Saharan Africa and South Asia, which exhibited divergence). However, we identified convergence clubs using an iterative testing procedure. The key findings from the club convergence algorithm results suggest that: (i) at the global level, club 1 converges; (ii) at regional levels, Sub-Saharan Africa forms 7 clubs; (iii) clubs 1 in the remaining 8 regions converged. Contrary to previous findings, this study finds that the process of convergence in ICT development reflects the desirable emanations of telecommunication policies sharing similar characteristics, at least to some extent, in terms of the ICT sharing across the globe.