While much empirical research has been done on the “productivity paradox” problem in the United States (for a recent survey, see Brynjolfsson 1993), there has been little comparable research among newly industrializing economies (NIES). The recent work of Kraemer and Dedrick (1993) shows some correlation of XT investment-GDP ratio with GDP growth rate for a cross section of eleven Asia-Pacific economies, but since no attempt is made to control for other influencing factors (e.g., non-IT related investment), such correlations may be spurious. Whether NI& face the productivity paradox therefore remains an open question.