Advances in Technology and Gobal Welfare

Abstract

The real impact of advances in technology on global welfare is an unresolved issue. According to a recent Human Development Report, globalization based on technical advances in information technology has not had a positive impact on economies of developing countries. While advances in technology have helped improve standards of living in industrialized countries, they have caused developing countries to further lag behind. Some other studies, however, have concluded that investment in technology is acritical factor in improving economic welfare of all countries. It is important to notes that most of the empirical studies in the latter group have treated technology investment as an independent variable explaining economic welfare.