Socioeconomic and Sociopolitical Transformations Through Information and Communication Technologies: Evidence from Transition Economies

The aim of this research is to identify the transformative role of information and communication technologies (ICT) in transition economies (TEs). We investigated how ICT spending influences the socioeconomic and sociopolitical changes in TEs belonging to two regional groups (Central and Eastern European and Latin American) from 2004 to 2010. Moreover, we compare the effects of ICT in TEs to those in developed OECD countries. Our results show that while ICT spending is positively associated with overall economic freedom and job creation, it does not significantly improve the TEs’ democratic values or mitigate their existing wealth inequality levels. The results also show that the impact of ICT spending on transition processes varies across regional groups. In addition, we confirm the different roles of ICTs in TEs and developed countries. These findings provide insights to future researchers on the role of ICT and its impact on societal changes (economic and political) in transition economies.