The Fundamental Significance of Information Technology in Modern Economic Growth and Development (original) (raw)

ICT and Economic Growth Nexus: Case of Central Asian Countries

Procedia of Social Sciences and Humanities, 2021

The Government of Uzbekistan declared the year of 2020 as “The Year of Science, Education and Development of the Digital Economy” and is implementing the State Program, aiming at to liberalize the economy, improve market related incentives, encourage private enterprises, to reduce the role of the public sector by introducing ICT and Internet, developing digital economy. In order to understand the causal relationship between ICT investment and economic growth researchers have exert many effort in the world. The results are different: in developed countries the impact of ICT on economic growth is more powerful than in developing countries. This paper aims at finding and measuring causality between Economic growth and ICT development in emerging economies of Central Asian Countries by using panel data over the period of 19 years from 2000 – 2018. The research findings revealed that inflation, trade openness, final consumption expenditure and unemployment impact significantly on GDP ...

ECONOMIC GROWTH AND INFORMATION TECHNOLOGIES - Comparative Approach.pdf

On the basis of the correlation and factor analysis of the comparative statistics it is shown that the development of modern ICT is one of the major factors of economic growth. Interrelations between ICT and other factors of economic growth are displayed. The crucial dependence of ICT development on the purposeful state policy including not only legislative support of new economy but also the stimulation of innovations is shown. The principal cause of ICT influence on economic growth is that ICT becomes now the new language of business communication and the foundation of the modern business environment. ICT not only have raised productivity but they have also transformed the pattern of the world economy organization, created new standards of management and marketing, accelerated the process of introducing new goods and services, and brought different national economies closer. Lagging behind in ICT devalues Russia's achievements in science and technology, hinders both their popularizing and conversion into new technologies, which sharply reduces the country's competitiveness

Does information and Communication Technology development Contributes to economic growth

Journal of theoretical and applied information technology, 2012

This paper studies the impact of Information and Communication Technology (ICT) development on economic growth in different countries and regions of the world. The results indicate that there is a positive relationship between real GDP growth and ICT development (as measured by the ICT Development Index) for 153 countries over the world. This study also finds that ICT development in the upper-middle income group has a higher effect on economic growth than other countries. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT development.

Ict And Economic Growth: Links And Possibilities Of Engaging

Intellectual Economics, 2019

The paper deals with analysis and evaluation of impact of information and communication technologies (ICT) on economic growth at the different hierarchical levels. Based on global tendencies of ICT development and their use as a factor of competitive advantages, it is proved that sustainable socioeconomic growth has acquired features of permanent digital development. For developing countries steep ICT development can enforce new impulse of economic progress, which in turn, is proved by correlation analysis and modeling of ICT factors influence on the main financial results. Considering current ICT development trends in business (based on case study of Ukraine ICT use statistics as one of the developing countries) and their relations with financial results, the main policy making actions aiming at further economic development can be defined. They should be aimed mainly at Internet access outspread and web-technologies effective use, particularly in the field of e-commerce.

The Impact of Information and Communication Technology Use on Economic Growth

2011

This paper studies the impact of Information and Communication Technology (ICT) use on economic growth in different countries and regions of the world. The results indicate that there is a positive relationship between growth rate of real GDP per capita and ICT use index (as measured by the number of internet users, fixed broadband internet subscribers and the number of mobile subscription per 100 inhabitants) for 159 countries over the world. This study also finds that ICT use in the high income group has a higher effect on economic growth than other groups. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate ICT use.

The Effect of Information and Communication Technology on Economic Growth

2017

Evaluating the sources of economic growth is obviously important, and numerous attempts have been made to judge the impact of many different factors on economic growth. Since some empirical studies have reported that information technology (IT) is one of the important factors in economic growth, this paper explores the impact of ICT on the economic growth of nine Arab countries (United Arab Emirates, Jordan, Bahrain, Algeria, Saudi Arabia, Tunisia, Lebanon, Morocco, and Oman) during the period 1997-2015. To achieve the objective of the study, a methodology was used to mix time series data with a (Panel data Approach) model by applying Fixed Effects Model (FEM) and Random Effects Model (REM). The results of the study showed that ICT has a positive statistical impact on economic growth. This means that increased Internet usage is leading to increased GDP growth. In order to increase GDP growth, Arab governments should continue to invest in ICT for their positive impact on economic gro...

ECONOMIC GROWTH AND INFORMATION TECHNOLOGIES

The most important task facing Russia at the present time is to achieve economic growth. These words are pronounced with equal frequency by westernizing liberals, centrist advocates of a strong state, social democrats, communists and nationalists. The President endorses the idea, as do members of the Government. The President’s annual Message to the Federal Assembly set the task of doubling GDP within the next 10 years, which would require a 7% annual rate of growth. There is, of course, an opposing view that prefers institutional reform to economic growth. Ye. T. Gaidar is its most categorical proponent. This position is difficult to refute by theoretical means alone, arguing solely on the basis of economic premises. Indeed, recovery from the recession of the 1990s has been largely exhausted as a source of growth; high oil prices cannot be maintained indefinitely; and the ill-defined, intermediate condition of our economy today hardly provides us a way to move forward quickly. It is difficult to support the “institutional reform” point of view, however, once one looks beyond purely economic considerations. 1. Institutions can be reformed, to the extent that society allows this to happen. More precisely, there is a maximum possible lag increment between legislative innovations and the institutions that actually exist in society. The size of that lag increment depends on many factors (see below), the most important of which is the degree to which the population is law-abiding. Unfortunately, Russia is not a highly law-abiding country, so the lag increment is small. It would be impossible to replicate in Russia what was done in Japan, which in 1898 adopted the German Civil Code. It is evident that the failures of reform during the 1990s were associated not only with the incomplete nature of reform measures in some regions, but also with the phenomenon of excessive reform, which took place in others. Laws and regulations that differ significantly from the concepts people have (“running ahead” of them), produce quite different, sometimes diametrically opposite, results from what their authors expected. 2. Economic growth increases the quantity and “quality” of support for reform on the part of those who experience material gains, but it also raises the level of faith in reform even among layers of the population who have not actually benefited, thus increasing the size of the lag increment. Reforms that were impossible to implement during the period of economic recession have become quite practicable in recent years. Thus, not only does economic growth depend on the success of institutional reform, but, conversely, the success of institutional reform is largely determined by economic growth. A substantial portion of public debate in Russia revolves around what factors determine the speed of economic growth, and how to bring about high rates of development in our economy. There are many recipes. The advocates of a strong state and the “dirigists” insist that government intervention in the economy should be increased. The libertarians, by contrast, recommend cuts in taxes and state spending. The institutionalists talk about the need to reform institutions and combat corruption, while the “techies” push the development of science and technology; and so on. None of these prescriptions should be rejected out of hand. Regional distinctions, such as the dynamic development of East Asian countries or Latin America’s endless running in place, clearly demonstrate the role of culture and institutions. There is a well-established correlation, shared by different countries, between economic failure and the level of corruption. It is also an irrefutable fact that in countries that have caught up economically, the state has played, and continues to play, a big role both in the creation of market institutions, and directly in the economy. But the opposite tendency is also observed: it became very apparent during the 1980s and 1990s that the reduction of government spending and superfluous social programs promotes economic growth. Particularly convincing is the case of Ireland, which sharply cut government spending and turned from one of the poorest nations of Western Europe into one of its economic leaders, in the space of ten years. On the other hand, Finland and Sweden, with government spending in the range of 45-50% of GDP or higher, are among the most competitive economies in the world. Neither should any of these recipes be adopted without reservations. Many of them are more in the nature of good intentions, than real recommendations. One might say that it would be very useful to abolish, tomorrow, those Russian traditions that impede economic development, such as negligence in carrying out one’s obligations, the habit of acting in circumvention of the law, etc. But popular traditions are the hardest thing to change, while forcibly effecting such changes could lead to unexpected and grave consequences, insofar as our virtues are a continuation of our faults. Other prescriptions, which appear more realistic on the surface, give rise to just as many objections – not only because they contradict one another, but due to more specific circumstances. For example, a reasonable and long overdue reform of the civil service, entailing an increase in civil service pay rates, runs smack into the impossibility of implementing such a pay raise, without corresponding pay scale increases for military and other federal budget sector employees (the division of government employees into civil servants and budget sector workers being somewhat arbitrary), with the attendant steep increase of state spending and acceleration of inflation. Therefore we shall take a purely empirical approach to the problem of economic growth, without paying attention to any previously formulated premises. We shall look exclusively at data from the most recent period, since it seems obvious that no prescription for growth is valid for all periods of time. For example, in the industrial age Keynesian recommendations were helpful for emerging from the Great Depression of 1929, while monetarist policies – the very opposite – charted a pathway out of the 1973 crisis. Moreover, current trends of globalization and “post-industrialization” may well have altered the way in which economic growth depends on various factors. Selection of a method for measuring national economic growth presents a special problem. Many economists question GDP per capita, the most widely used indicator. There are many arguments against it: the paradox of the professor and his housekeeper, its dependence on the method of data analysis used, the imprecision of estimates, its undercounting of the public sector, and so forth, up to and including proposals to count female beauty as part of the gross product. Many other, more refined measures have been developed. Nonetheless, we shall use GDP per capita (adjusted for parity of purchasing power) to express the success of transitional “semi-market” economies. One reason for this choice is that none of the new measures has become generally accepted, so the choice of any one of them could become a factor affecting the analysis. Moreover, the primary data estimates for all aspects of the performance of transitional economies with a large informal sector have such a large margin of error, that employing more refined indicators will not make the calculation of correlations more precise. The main way to minimize the margin of error is to use average GDP growth values over long periods of time (at least 4-5 years). For transit economies (and not them alone), however, even this does not provide complete protection against mistakes. The short period of our analysis includes many events on the scale of the Asian crisis of 1997, the Russian crisis of 1998, September 11, 2001 and its consequences, etc., which makes the estimates highly dependent on the particular choice of a period for which to compute GDP growth. Furthermore, part of the economic recession in Russia and other former socialist countries during the initial period of reform was actually not a true recession, but reflected a change in the “unit of distortion”: in the Soviet economy, the main distortions were attributable to upward exaggeration of data, whereas in the post-Soviet economy the reverse has been the case – the understating of performance for purposes of evading taxation. Conversely, part of recent years’ economic growth likewise should be attributed not to real growth, but to the legalization of incomes as companies exited the informal sector.

Effect of ICT on World Economic Growth

SSRN Electronic Journal, 2012

This paper aim is to study on the agreement of leading academicians, global organization and industry analyst that there is direct correlation between the use of ICT and world economic growth. Analysis done resulting to empirical studies and research had been carried out between ICT and economic growth found there is both mixed results which depended on the methodology of the research. Engagement and geographical landscape or situation should be considered. Studies that was done previously in the 1990"s that ICT potentially contribute to rapid economic growth. Therefore, with hype of new economy is over further analysis is done in this research study as well. Problem statement is defined and data sampling method is proposed in this study. Latest secondary data resources obtained for the purpose of this study in order to examine the contribution of ICT to macroeconomic growth performance. Prior to this analysis, what was observed that in order to enhance economic growth globally, there is a need to implement specific policies that facilitate investment in ICT. Future research will need to study on measuring the impact in detail for the macroeconomic studies in comparison to empirical method.

Exploring the Impact of Information and Communication Technology in Regions of Kazakhstan

Economy of Region, 2021

The research aims to assess the impact of information and communication technology (ICT) on economic growth in different regions of Kazakhstan. A few basic complex methods, such as systematisation of statistical data and regression analysis, conducted using the STATA software package, were used to analyse the relationship of indicators in different periods. Based on data for the period 2007-2018 obtained from the World Bank, the International Telecommunication Union and statistical yearbook of Kazakhstan, we assess how ICT, expressed by such indicators as Internet access in organisations, the number of computers and fixed telephones, influences economic growth. Our analysis revealed differences in the speed of implementation and development of ICT depending on the region, meaning that the least developed territories still lag in the number of Internet users. We have concluded that since 2014, the country's currency has weakened due to the decrease in the cost of oil and consequent economic decline; mobile devices are increasingly used, reducing the demand for fixed telephones; computers in organisations are affecting economic growth in more developed regions since 2014, although the negative effect of Internet access is growing, as the model shows. The obtained results can used for strategy development to compare economic growth in regions with low, medium, and high development rates.

Determinants of Economic Growth in the Information Age

This paper investigates the hypothesis that ICT penetration has a significant positive effect on economic growth using data from over 100 countries for the period 1995-2005, during which ICT rapidly penetrated most nations. Our study documents three principal findings: (i) ICT penetration, combined with the initial level of income, institutional quality, population size, the agricultural sector’s share in the economy, and investment intensity are strong determinants of the variation in GDP growth across countries over the period 1995-2005; (ii) the magnitude of the ICT effect on growth is larger for the lower-ICT subsample than for the higher-ICT group. This contrast is even more pronounced over the subperiod 2000-05; and (iii) investment intensity has a stronger effect on growth for the lower-ICT subsample than for the higher-ICT group, while population size has a stronger effect on growth for the latter than for the former subsample.