Can the internet boost the economic growth of mainland China? Gaining knowledge from the world wide web

Abstract

The internet has gained popularity in recent years. It provides a lot of useful information to all countries, both the rich and the ones that might be classed as economically backwards. While our predecessors could only obtain information by reading printed books and magazines, which can be rather expensive from a developing countries’ perspective, the presence of the internet substaintially lowers the cost of obtaining information. A reduction in transaction costs also implies a reduction in the costs of doing business, and this may in turn lead to an increase in economic growth. Nevertheless, some scholars hold the opposite view, and feel that it will only widen the gap between rich and poor countries as computers used nowadays are quite expensive. Those who can use computers are in a minority group. Can the internet boost economic growth in mainland China? This paper tries to review the relevant knowledge from the World Wide Web.