ICT INFRASTRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM ASEAN-5 USING PANEL DYNAMIC OLS ANALYSIS (original) (raw)
Related papers
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.
A Pooled Mean Group Estimation on ICT Infrastructure and Economic Growth in ASEAN-5 Countries
This study empirically investigates the effects of infrastructures for information and communications technologies (ICT) on economic growth in selected ASEAN countries over the period 1980-2010. The studies of ICT infrastructure have received much attention in recent literature for its potential contribution towards growth and productivity. However, there is little empirical evidence on the effects of ICT infrastructure on growth performance, particularly for ASEAN countries. This study examines recent data using the pooled mean group estimator (PMGE). The availability of ICT infrastructure is captured by the number of subscriptions for both fixed line and mobile phone, the number of telephone lines, the number of mobile cellular subscriptions and the number of internet users. Empirical results show statistically significant positive correlations for all four variables. This study concludes that ICT infrastructure is a key driver of ASEAN economic growth.
International Journal of Industrial Management, 2021
Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth. The durability of this technology is demonstrated by the rapid proliferation of the Internet, mobile phones and cellular networks across the globe. However, among economic scholars, the question of exactly how the spread of ICT affects economic development and FDI, especially in ASEAN countries with differences in levels of income, remains unanswered. The aim of this study was essentially to explore the relationship between ICT dissemination, FDI and economic growth in ASEAN-8 countries. By using data from 2003 to 2017, the panel regression analysis was used to evaluate these relationships. The results showed that the dissemination of ICT and FDI are important and they have a positive effect on the ASEAN-8 countries’ economic development.
The importance of telecommunications plays a very important role in achieving one of the targets in the Millennium Development Goals of the United Nations, which is to increase the access of people in both fixed-line and mobile phone telecommunications, measured in terms of teledensity. This paper attempts to determine if the teledensity in both modes of telecommunications, as well as the aggregate of these two modes, can contribute to economic growth, particularly in the ASEAN region where there is a promising venue to conduct business and to harness the benefits of investing in such facilities. Using a panel data analysis from seven ASEAN countries from 1992 – 2010 employing the LSDV-1 process and penetration rates as a proxy for teledensity, the findings revealed that fixed-line penetration rates are positively related to economic growth measured in terms of GDP per capita, while mobile and total penetration rates are not significantly associated with economic growth considering that mobile telecommunications were introduced later than fixed line telephones. It will still need a considerable length of time to fully realize the benefits of telecommunications. Furthermore, this study recognizes the need for better and proper use of telecommunications facilities and to ensure its accessibility in the remote areas of the region. Such policies are important to ensure that the benefits of telecommunications access can be fully achieved. N.B. This paper is written solely for the Ph.D. course in Advanced Statistics. Please do not cite this paper for your own research. Thank you. (UPDATE: To be presented in the 51st Philippine Economic Society Annual Meeting on November 15, 2013)
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
ICT and Economic Growth in East African Countries: A Panel Data Approach
Journal of Information Engineering and Applications, 2019
This paper empirically investigates the impact of telecommunications infrastructure in East Africa. The researcher uses the International Telecommunication Union, UN and World Bank data and applies the instrumental variable-generalized method of moments to a panel of 19 countries over the period 2000-2015. Whether telecommunication investment contributes or not to economic growth has been at the center of literature debate over time with varying empirical evidences for developed and developing nation. The effect of telecom market privatization has been controlled through independent panels. The results show that the telecom index composed of the Internet, mobile cellular and fixed line has contributed to economic growth. A one percentage point increase in this telecom index usage raises real per capita growth by 0.02 for the panel of whole countries. The result is more than this for countries that privatized their telecom sector and less for those that failed to privatize. Overall, the results suggest that the expansion of telecommunications infrastructure fosters economic growth in East Africa. With much room for potential growth enhancement of telecommunications infrastructure, policies to expand access to telecom services should be strongly encouraged by respective governments in general and privatization of telecommunication remained under government control in particular is desired.
The importance of telecommunications plays a very important role in achieving one of the targets in the Millennium Development Goals of the United Nations, which is to increase the access of people in both fixed-line and mobile phone telecommunications, measured in terms of teledensity. This paper attempts to determine if the teledensity in both modes of telecommunications, as well as the aggregate of these two modes, can contribute to economic growth, particularly in the ASEAN region where there is a promising venue to conduct business and to harness the benefits of investing in such facilities. Using a panel data analysis from seven ASEAN countries from 1992 – 2010 employing the LSDV-1 process and penetration rates as a proxy for teledensity, the findings revealed that fixed-line penetration rates are positively related to economic growth measured in terms of GDP per capita, while mobile and total penetration rates are not significantly associated with economic growth considering that mobile telecommunications were introduced later than fixed line telephones. It will still need a considerable length of time to fully realize the benefits of telecommunications. Furthermore, this study recognizes the need for better and proper use of telecommunications facilities and to ensure its accessibility in the remote areas of the region. Such policies are important to ensure that the benefits of telecommunications access can be fully achieved.
ICT and Economic Growth: New Evidence from Some Developed Countries
2012
There have been significant advances in the field of information and communication technology (ICT) in recent decades. ICT plays a major role in innovation, raising productivity and increasing economic growth and therefore affects all economic sectors. The purpose of this paper is to estimate the impact of ICT on economic growth in developed countries. To do so, we have used a sample of 30 developed countries for which the necessary data were available for the period 20012006. We concentrated on the usage aspect of ICT to deal with its impact on economic growth. We have also used a new composite index of ICT called Digital Opportunity Index (DOI) covering 3 dimensions including overall opportunity, infrastructure and applications. Our findings based on a panel data regression models indicate that in general significance and positive relationship between ICT and economic growth exists in the countries under consideration. Therefore the expansion of ICT programs in these countries is ...
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...