Measuring ICT effect on Chinese rural economy

This paper puts forward a framework of how ICT impact on Chinese rural economy with a supply and demand perspective. Based on Solow model, this paper made an improvement of this model by adding ICT factors into the model. Then using the statistical data of Chinese rural area from 1999 to 2008, this paper made an comparison of Solow model and the improved model and find out the improved model has a better explanation of Chinese rural economy, which means rural Informatazation has an amplify effect on physical capital and human capital.