Can Information And Communication Technology Promote Venture Creation? A Cross-Country Study Using An Instrument Variable Approach

This study employed cross-country data from the World Bank for the period from 2002 to 2014 and empirically examined the impact of Information and Communication Technology (ICT) development on venture creation. The estimation strategies include a fixed effect model and an instrument variable specification. The estimation results show that the impact of ICT development on venture creation was negative among low/middle-income countries but was positive among middle/high-income countries. We attribute this result to the richer complementary inputs to ICT and fairer environments for business competition in high income countries.