Analysis on the Model of Digital Divide & the Demonstration Research in Narrowing the Digital Divide with ICT

Abstract

Digital divide appears when China coordinates the development of traditional industry and informatization. The main reason is the asymmetric information caused by regional informatization difference. The study uses Keith Griffin's model that is about the generation and diffusion of agricultural green technology revolution, and uses the ideas of information economics to draw an Information and Communications Technology (ICT) diffusion model containing an isoquant. The ICT model can analyze user's different choices in communication technologies in different stages of informatization, and we can identify an ICT gap by crossing the isoquant of different stages and the ratio between different user's capital and laboring. The ICT gap can describe the size of the digital divide. A demonstration analysis is made on the informatization level of Liaoning province by informatization index measuring. The results show that ICT is an efficient way to narrow digital divide and also give suggestions in how to further develop ICT and narrow digital divide.