Estimating the impact of information technology on economic growth in south Asian countries: The silver lining of education (original) (raw)
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The Impact of ICT on East Asian Economic Growth: Panel Estimation Approach
Journal of the Knowledge Economy, 2012
This paper tests the impact of information and communications technology (ICT) on economic growth for ASEAN5+3 countries consisting of Malaysia, Thailand, Singapore, Indonesia, Philippines, Japan, Korea and China using panel data set from 1975 to 2006. In this paper, we investigate the impact of ICT on economic growth (GDP) based on standard production function consisting of capital (CAP) and labour (LAB) (number of employment as proxy of human capital), as independent variables. Telecommunications investment (TELINT) is used as a proxy to gauge the contribution of ICT as new independent variable to output growth in ASEAN5+3 countries. The study divided the ASEAN5+3 countries into two groups: ASEAN5 and ASEAN5+3 countries. We employ panel data set using various test such as panel unit root test, panel cointegration, Hausman test and generalised least squares method in order to detect the relationship between the dependent variable (GDP) and independent variables (CAP, LAB and TELINT) for ASEAN5+3 countries. The existence of long-run relationship between GDP and factor of production (capital, labour and telecommunications investment) is proven from the panel cointegration test for ASEAN5. Based on fixed effect for model 1 (ASEAN5) and random effect for model 2 (ASEAN5+3), the paper found out that labour, capital and telecommunications investment have positive relationship towards GDP. Thus, the study concludes that ICT has played an important role as engine of growth for sustainable development in ASEAN5 and ASEAN5+3 countries. In this context, ASEAN leader should take this opportunity from the formation of ASEAN5+3
Information and Communication Technology (ICT) on Economic Growth in Asia: A Panel Data Analysis
International journal of business and management, 2022
Information and communication technology (ICT) plays an increasingly important role in driving economic growth and sustainability. Asia, being the most heterogenous region in terms of ICT development, consist of both most connected and least connected countries based on the global ICT Development Index 2017. Therefore, this study investigates the impact of ICT on economic growth for 20 Asian countries from year 2000 to 2020. Using the robust panel Fixed Effect model and Panel Feasible Generalized Least Squares method, findings revealed that fixed telephone subscriptions, mobile cellular subscriptions and Internet users are the ICT variables that have significant and positive effects on economic growth in Asia. Fixed telephone subscriptions however, emerged insignificant which could be due to its high cost and low practicality relative to other forms of ICT. Findings from this study benefit related parties such as firms and policymakers by encouraging adoption and usage of mobile phones and the Internet through provision of adequate infrastructure and affordable ICT services.
The Effect of Education, R&D and ICT on Economic Growth in High Income Countries
This document examines the causal relationship between information and communications technology (ICT), education, research & development (R&D) and economic growth in high income countries using panel data set from 1990 to 2015. We employ panel data set using various tests such as panel unit root test, panel cointegration in order to detect the relationship between the dependent variable (GDP) and independent variables (ED, RD, MCS and IU). The empirical results of the vector error correction model (VECM) show that there exists a unidirectional relation causality from education and mobile cellular telephone to economic growth, from internet users and mobile cellular telephone to research and development and from education to research and development, while bidirectional causality between internet users and economic growth, between research and development and economic growth, between education, internet users and mobile cellular telephone in the short-run. In addition, the results also show that there is a bidirectional relationship between education, internet users and mobile cellular telephone, while there is a unidirectional relationship from internet users to economic growth and research and development and from mobile cellular telephone to economic growth and research and development in the long-run.
Today, countries are trying to allocate more funds for Information and Communication Technology (ICT) in their budgets because they believe that it is vital for the health of any economy, especially for developing countries. This allocation of funds has been very important for small and medium enterprises (SMEs) and micro level firms, which create jobs, enrich the variety of goods and services, and improve international competitiveness of local economies. Additionally, this allocation of more resources to ICT has elevated domestic living standards in both rural and urban areas in the developing world, as well as among both unskilled and skilled workers. This study examines the hypothesis that the impacts of ICT investment are positive on economic growth. To that aim, this study focuses on the period from 2001 to 2010 and examines the eighteen Organization for Economic Co-operation and Development (OECD) countries. In order to measure the impact of the ICT, the dynamic panel estimator method will be used for the statistical analysis. According to the result of this analysis, economic growth is affected by ICT significantly positive. Keywords: Macro-economy, ICT, economic growth
2011
In recent years, progress in Information and Communication Technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization processes. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results,regarding to different research methodology and geographical configuration of the study. In this paper, we estimate the endogenous production growth model, using panel data of the Newly Industrialized Countries (NICs) in Asia, namely Singapore, South Korea, Hong Kong and Malaysia over the period of 1990-2007. We find a strong significant positive impact of ICT investment on economic growth for these countries. This implies that if these countries seek to enhance their e...
Human capital is an important input to growth almost in every economy. This paper analyses and compares the contribution of education and ICT (information and communication Technology) variables on economic growth. Multiple regression and unbalanced panel approach are applied to a sample of ten countries from 1976 to 2010. The results revealed that school life expectancy, primary and secondary school enrolment influence on Malaysia's growth. Meanwhile, the number of internet users, primary and tertiary school enrolment influences growth of Muslim countries.
Educational Levels and the Impact of ICT on Economic Growth: Evidence of a Cointegrated Panel
International Journal of Business and Social Research, 2015
The purpose of this paper is to analyze the long-run relation between economic growth and access to telecommunications services, comprising mobile telephony, fixed telephony, and broadband. We examine the differentiated impact on economic growth for a sample of twelve countries, divided according their educational level, i.e. high, medium, and low. The role of telecommunications alone on economic growth is limited unless is also accompanied by parallel investments in education; only this joint effort can provide a deep impact on growth due to a more efficient use of those technologies. Three panel data analysis are applied, one for each group of countries; the econometric analysis includes unit tests root tests, cointegration tests to examine the presence of long-term relationships, and an Ordinary Least Squares (OLS) panel model to estimate the impact of the of telecommunications and educational variables on economic growth. The evidence confirms the presence of a differential impact of telecommunications on economic growth related to educational levels.
ICT INFRASTRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM ASEAN-5 USING PANEL DYNAMIC OLS ANALYSIS
In this study, we investigate empirically the contribution of information and communications technologies (ICT) infrastructure, in affecting economic growth in selected ASEAN countries over the period . The studies of ICT infrastructure have received so much attention in recent studies due to its potential role to contribute to more rapid growth and productivity gains. However, empirical evidences on the importance of ICT infrastructure for growth performance, particularly for ASEAN countries, have been very scarce in the literature. This study examines the contribution made by ICT using more recent data. The availability of ICT infrastructure is captured by fixed line mobile phone subscribers (per 100 inhabitants). In addition, this study also includes another two measures of ICT which are mobile cellular subscription (per 100 inhabitants) and internet users (per 100 inhabitants). By employing panel dynamic OLS (DOLS) regression methods, the results suggest a significant and positive correlation for all three variables that capture ICT infrastructure. The study concluded that ICT infrastructure indeed a key driver for ASEAN growth performance.
2012
In recent years, progress in information and communication technology (ICT) has coused many structural changes, including the reorganization of economics globalization, and trade extention,which has led to capital flows and the enhancement of information availability.Moreover,ICT plays a significant role in the development of each economic sector,especially during liberazation processes. Growth economists predict that economic growth is driven by investment in ICT.However, empirical studies on this issue have produced mixed results, due to different research methodology and geographical configuration ultilized in the studies, In this paper we estimate the endogenous production growth model, using panel data of the newly industrialized countries (NICS) in Asia-namely Singapore, South Korea, Hong Kong, and Malaysia- over the period of 1990-2007. We find a strong significant positive impact of ICT investment on economic growth for these countries.This indicates that if these countries ...
The Impact of Information and Communication Technology (ICT) on Economic Growth in the OIC Countries
Economic and Environmental Studies, 2017
New growth theories hypothesize economic growth processes as heavily dependent on investment in Information and Communication Technology (ICT). However, the full empirical verification of this hypothesis still is an open task, particularly when growth is considered within selected countries such as the OIC 1 countries. Furthermore, the conclusions derived from research concerning the causal relationship between ICT and economic growth is often sensitive to the research methodology employed. This paper employs dynamics and static panel data approach within a framework of growth model and apply them to the economy of OIC countries over the time period of 1990-2014. The estimates reveal a significant impact of investments in ICT on economic growth in the countries considered. The policy implication of this paper is that the OIC countries should design specific policies for promoting investment in ICT.