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China s recent economic growth has expanded industrialization and urbanization, upgraded consumption, increased social mobility, and initiated a shift from an agricultural-based economy to one based on services and industry. However, more than half of China s population still lives in rural areas, where the average per capital income is less than a third of the urban average. The government of China has increased its commitment to rural development and poverty-reduction programs, with attention to narrowing the rural-urban divide. Informatization defined as the transformation of an economy...

'Contribution of Information and Communication Technologies to Growth' is part of the World Bank Working Paper series. These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion. The worldwide development of information and communication technology (ICT) has accelerated dramatically over the past decade. Technological advances and increased competition have led to falling prices for ICT goods and services, which has provided a strong incentive to replace other forms of capital and labor with information technology equipment....