Information technologies and economic growth: Do the physical measures tell us something (original) (raw)
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Economic Growth And Information Technology: A Note
2005
Abstract: The usage of information technology (IT) towards sustainable economic growth is found to yield three main effects:(1) an efficiency effect,(2) a scale effect, and (3) a capital utilization effect. The first two effects are multiplicative whereas the third effect is additive on aggregate output productivity. In essence, this paper suggests that IT is more productive only if the economy is capable of replacing its sustainable capital resources at a rate exceeding that of consumption sacrifice.
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
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 ...
ICT AND ECONOMIC GROWTH – NEW EVIDENCE FROM INTERNATIONAL COMPARISONS –
This paper follows up on previous OECD work for the 2001 and 2002 OECD Ministerial meetings. It was concluded that information and communications technology (ICT) was among the key factors explaining growth differentials in the OECD area in the 1990s, and that ICT had the potential to contribute to more rapid growth in the future. The current paper examines whether ICT is still important now the hype of the new economy is over. It differs from previous OECD work as it considers, firstly, a range of questions that were not explicitly addressed before. For example, why have some OECD countries invested more in ICT than others? What factors help firms in seizing the benefits from ICT? How precisely does ICT affect firm performance? And what policies should governments undertake to help firms benefit from ICT? The paper also differs from previous work as it is based on a broad set of new data and empirical studies. The study incorporates new evidence from official statistics on the use ...
Information and Communication Technology Use and Economic Growth
PLoS ONE, 2012
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 process. 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. This paper examines the impact of Information and Communication Technology (ICT) use on economic growth using the Generalized Method of Moments (GMM) estimator within the framework of a dynamic panel data approach and applies it to 159 countries over the period 2000 to 2009. 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). We also find that the effect of ICT use on economic growth is higher in high income group rather 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.
Telecommunications Policy, 2011
This paper examines the hypothesis that ICT penetration has positive effects on economic growth. On theoretical grounds, this paper discusses three channels through which ICT penetration can affect growth: (i) fostering technology diffusion and innovation; (ii) enhancing the quality of decision-making by firms and households; and (iii) increasing demand and reducing production costs, which together raises the output level. This paper conducts three empirical exercises to provide a comprehensive documentation of the role of ICT as a source of growth in the 1996-2005 period. The first exercise shows that growth in 1996-2005 improved relative to the previous two decades and experienced a very significant structural change. The second exercise uses the traditional crosscountry regression method to identify a strong association between ICT penetration and growth during 1996-2005, controlling for other potential growth drivers and country-fixed effects. The third exercise uses the system Generalized Method of Moment (GMM) for dynamic panel data analysis to tease out the causal link between ICT penetration and growth. This analysis also shows that, for the average country, the marginal effect of the penetration of internet users was larger than that of mobile phones, which in turn is larger than that of personal computers. The marginal effect of ICT penetration, however, lessens as the penetration increases. This paper points out several policy implications drawn from its analyses and findings.
IIMB Management Review, 2018
This study examines certain long-run relationships hypothesised to be present among per capita real GDP, information and communication technology (ICT) infrastructure, consumer price index, labour force participation rate, and gross fixed capital formation manifest in G-20 countries recorded for the 2001-2012 period. Using panel cointegration, the study finds that the variables are cointegrated and do not drift apart in the long run. Methodology using vector error correction models (VECM) further confirms that embellishment of ICT infrastructure-an apparent imperative in an economy's information technology (IT) policy formulation-for both fixed broadband and internet users causes a boost in the per capita GDP.
Information Technology and Productivity Growth Across Countries and Sectors
SSRN Electronic Journal, 2000
The extraordinary success of the U.S. economy and the parallel growth slowdown of the large European countries and Japan in the 1990s bear a simple rationale. The United States has eventually benefited from the effective adoption of information technologies. The introduction of the newly installed IT capital has not instead enhanced aggregate capital accumulation and TFP growth in Europe and Japan. At least on impact, IT capital has mainly displaced existing capital and methods of production rather than supplementing them. The limited growth-enhancing effects from information technologies in countries other than the United States have occurred in the IT-producing sectors, while the IT-using industries have contributed the bulk of productivity gains in the United States.
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.