The dynamic impact of ICT on the economic growth in the developing countries
Article Sidebar
Main Article Content
Abstract
This paper explores the impact of the information communication and technology (ICT) on the economic growth in the developing countries, the study collect a data for 33 years (1990-2022) and a panel of eighteen developing countries , the purpose is to evaluate how the using of the ICT’s impact the economic growth in the short and long term. Employing a panel series and an autoregressive distributed lag (ARDL) co-integration approach. Our research incorporates some key economic indicators such as GDP growth, individual using of the internet (INT), mobile cellular subscriptions (MCS), and gross fixed capital formation (GFCF). Our empirical results indicate a co-integration link between the variables based on Westerlund test. The results of (PMG-ARDL) reveal that (INT) negatively affect the GDP growth in both the short and long run, those results elucidate that a 1% increase in (INT) results in a -1.02% and -0.03% growth in growth economic. However, the same output showed that the MCS positively effect the economic growth, in the long term, a 1% increase in the MCS results in a 0.001% growth in the GDP growth, and a 0.04% in the short run. The robustness check using (CS-ARDL) showed that the ICT is negatively affect the economic growth in both short and long run. The causality test indicate that both of MCS and INT cause the economic growth.
Metrics
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
- Albiman, M., & Sulong, Z. (2017). The linear and non-linear impacts of ICT on economic growth, of disaggregate income groups within SSA region. Telecommunications Policy, 41, 555-572. doi:10.1016/j.telpol.2017.07.007
- Appiah-Otoo , I. (2021). The impact of ICT on economic growth-Comparing rich and poor countries. Telecommunications Policy. doi:https://doi.org/10.1016/j.telpol.2020.102082
- Girijasankar , M., Tapan , P., & Pradhan, R. (2018). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review. doi:10.1016/j.iimb.2018.01.001
- Inklaar, R., O'Mahony, M., & Timmer, M. (2005). ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY-LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES. the review of income and wealth, 51, 505-536. doi: https://doi.org/10.1111/j.1475-4991.2005.00166.x
- Juodis, A., Karavias , Y., & Sarafidis , V. (2021). A homogeneous approach to testing for Granger non-causality in heterogeneous panels. Empirical Economics, 60, 93–112. doi:https://doi.org/10.1007/s00181-020-01970-9
- Kumari , R., & Kumar Singh, S. (2023). Impact of ICT Infrastructure, Financial Development, and Trade Openness on Economic Growth: New Evidence from Low- and High-Income Countries. Journal of the Knowledge Economy, 7069–7098. doi:https://doi.org/10.1007/s13132-023-01332-7
- Pradhan, R., Arvin , M., & norman , n. (2015). The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries. Technology in Society, 42, 135-149. doi:https://doi.org/10.1016/j.techsoc.2015.04.002
- Wamboye, E., Tochkov , K., & S Sergi , B. (2015). Technology Adoption and Growth in sub-Saharan African Countries. Comparative Economic Studies, 57, 136–167. doi:https://doi.org/10.1057/ces.2014.38
- aghaei, m., & Rezagholizadeh, M. (2017). The Impact of Information and Communication Technology (ICT) on Economic Growth in the OIC Countries. economic and environmental studies, 17. doi: https://doi.org/10.25167/ees.2017.42.7
- andreas, p., & esben sloth, e. (2012). Introduction: long term economic development – demand, finance, organization, policy and innovation in a Schumpeterian perspective. Journal of Evolutionary Economics, 22, 621–625. Récupéré sur https://link.springer.com/article/10.1007/s00191-012-0279-z
- antonio , f.-p., manual, a.-g., & ricardo, h.-m. (2020). Impact of ICT development on economic growth. A study of OECD European union countries. Technology in Society, 63. doi:https://doi.org/10.1016/j.techsoc.2020.101420
- Biswanath, B., & Anasuya, H. (2024). Investigating the direct and indirect effects of Information and Communication Technology on economic growth in the emerging economies: role of financial development, foreign direct investment, innovation, and institutional quality. Information Technology for Development , 40, 33-56. doi:https://doi.org/10.1080/02681102.2023.2233463
- blomquist, j., & westerlund, j. (2013, 12). Testing slope homogeneity in large panels with serial correlation. Economics Letters, 121, 374-378. doi:https://doi.org/10.1016/j.econlet.2013.09.012
- dale, W., & khuong, M. (2016, 5). The ICT revolution, world economic growth, and policy issues. Telecommunications Policy, 40, 383-397. doi:https://doi.org/10.1016/j.telpol.2016.01.002
- ebrahim, h. n., & majid, a. (2009). The effect of ICT on economic growth: Further evidence. International Bulletin of Business Administration, 10, 46–56.
- ernesto, r.-c., & inmaculada, m.-z. (2019, 8). The effect of ICT on trade: Does product complexity matter? .Telematics and Informatics, 41, 182-196. doi:. https://doi.org/10.1016/j.tele.2019.05.001
- fan, J., liao, Y., & yao, J. (2015). POWER ENHANCEMENT IN HIGH-DIMENSIONAL CROSS-SECTIONAL TESTS. The Econometric Society, 83, 1497-1541. Récupéré sur http://www.jstor.org/stable/43616976
- francesco, v. (2015, 3). The modern drivers of productivity. Research Policy, 44, 357-369. doi:https://doi.org/10.1016/j.respol.2014.10.011
- Gruber, H., & Koutroumpis, P. (2010). Mobile communications: Diffusion facts and prospects. Communications and Strategies, 77, 133–45.
- Gruber, H., & Koutroumpis, P. (2011). Mobile telecommunications and the impact on economic development. Economic Policy, 26, 387–426. doi:https://doi.org/10.1111/j.1468-0327.2011.00266.x
- harberts , G., & christopher, g. (2011, 12). Economic impacts of mobile versus fixed broadband. Telecommunications Policy, 35, 999-1009. doi:https://doi.org/10.1016/j.telpol.2011.07.004
- jahanger, a., hossein, r. m., onwe, j. c., ogwu, S. O., awan, a., & Balsalobre-Lorente, D. (2023). Analyzing the N-shaped EKC among top nuclear energy generating nations: A novel dynamic common correlated effects approach. Gondwana Research, 116, 73-88. doi:https://doi.org/10.1016/j.gr.2022.12.012
- juodis, A., & reese, s. (2021). The Incidental Parameters Problem in Testing for Remaining Cross-Section Correlation. Journal of Business & Economic Statistics, 40, 1191-1203. doi: https://doi.org/10.1080/07350015.2021.1906687
- kashif, i., syad tauseef, h., hui, p., & khurshaid. (2019, 3 28). Analyzing the role of information and telecommunication technology in human development: panel data analysis. Environmental Science and Pollution Research, 26, 15153–15161. doi:. https://doi.org/10.1007/s11356-019-04918-4
- khuong , M. (2011). ICT as a source of economic growth in the information age: Empirical evidence from the 1996–2005 period. Telecommunications Policy, 35, 357-372. doi:https://doi.org/10.1016/j.telpol.2011.02.008
- khuong, M. (2011, 5). ICT as a source of economic growth in the information age: Empirical evidence from the 1996–2005 period. Telecommunications Policy, 35, 357-372. doi:https://doi.org/10.1016/j.telpol.2011.02.008
- khuong, v., payam, h., & erik, b. (Telecommunications Policy, 3). ICT as a driver of economic growth: A survey of the literature and directions for future research. Telecommunications Policy, 44. doi:https://doi.org/10.1016/j.telpol.2020.101922
- Koutroumpis, P. (2009). The economic impact of broadband on growth: A simultaneous approach. Telecommunications Policy, 33, 471-485. doi:https://doi.org/10.1016/j.telpol.2009.07.004
- lars-hendrik, r., & leonard, w. (2001). Telecommunications Infrastructure and Economic Development: A Simultaneous Approach. AMERICAN ECONOMIC REVIEW, 91, 909–923. doi:10.1257/aer.91.4.909
- lars-hendrik, r., & leonard, w. (2001). Telecommunications Infrastructure and Economic Development: A Simultaneous Approach. american economic review, 91, 909–923. doi:10.1257/aer.91.4.909
- masoud, a. m., & zunaidah, s. (2017, 8). The linear and non-linear impacts of ICT on economic growth, of disaggregate income groups within SSA region. Telecommunications Policy, 41, 555-572. doi:https://doi.org/10.1016/j.telpol.2017.07.007
- matti, p. (2002, 6). The New Economy: facts, impacts and policies. Information Economics and Policy, 14, 133-144. doi:https://doi.org/10.1016/S0167-6245(01)00063-4
- michael, r., & shiling, z. (2016). Mobile telecommunications service and economic growth: Evidence from China. Telecommunications Policy, 40, 89-101. doi:https://doi.org/10.1016/j.telpol.2015.06.005
- mohammad, s., & jef, g. (2016). The effects of Internet usage, financial development and trade openness on economic growth in South Africa: A time series analysis. Telematics and Informatics, 33, 1141-1154. doi:https://doi.org/10.1016/j.tele.2015.11.006
- pantelis, k. (2009, 10). The economic impact of broadband on growth: A simultaneous approach. Telecommunications Policy, 33, 471-485. doi:https://doi.org/10.1016/j.telpol.2009.07.004
- pesaran, m. (2015). Testing Weak Cross-Sectional Dependence in Large Panels. Econometric Reviews, 34, 1089-1117. doi: https://doi.org/10.1080/07474938.2014.956623
- pesaran, M., & yamagata, t. (2008, 1). Testing slope homogeneity in large panels. Journal of Econometrics, 142, 50-93. doi:https://doi.org/10.1016/j.jeconom.2007.05.010
- raef, b., & alaa, A. (2019). Impact of Information and Communication Technology on Economic Growth: Evidence from Developing Countries. Economies, 7. doi:10.3390/economies7010021
- robert, E., & lucas, j. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3-42. doi:https://doi.org/10.1016/0304-3932(88)90168-7
- robert, M. (1956, 2 1). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70, 65–94. doi:https://doi.org/10.2307/1884513
- ronald, r. k., peter, j. s., & aristeidis, s. (2016, 3). The effects of ICT⁎ on output per worker: A study of the Chinese economy. Telecommunications Policy, 40, 102-115. doi:https://doi.org/10.1016/j.telpol.2015.06.004
- rudra, p., girijasankar, m., & tapan, p. (2018, 3). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review, 30, 91-103. doi:https://doi.org/10.1016/j.iimb.2018.01.001
- rudra, p., mak, b., & neville, r. (2015, 8). The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries. Technology in Society, 42, 135-149. doi:https://doi.org/10.1016/j.techsoc.2015.04.002
- sanjeev, d., & kenneth, L. (2000, 4). Information Technology and Productivity: Evidence from Country-Level Data. management science, 46. doi:https://doi.org/10.1287/mnsc.46.4.548.12057
- Sassi , S., & goaied, m. (2013). Financial development, ICT diffusion and economic growth: Lessons from MENA region. Telecommunications Policy, 37, 252-261. doi:https://doi.org/10.1016/j.telpol.2012.12.004
- Schumpeter, & joseph, A. (1934). The Theory of Economic Development. Cambridge: Harvard University Press.
- seifallah, s., & mohamed, g. (2013). Financial development, ICT diffusion and economic growth: Lessons from MENA region. Telecommunications Policy, 37, 252-261. doi:https://doi.org/10.1016/j.telpol.2012.12.004
- Sepehrdoust, H., & Ghorbanseresht, M. (2018). Impact of information and communication technology and financial development on economic growth of OPEC developing economies. Kasetsart Journal of Social Sciences -- formerly Kasetsart Journal (Social Sciences), 40, 546-551. doi:doi.org/10.1016/j.kjss.2018.01.008
- shqipe, c.-r., veland, r., hyrije, a.-a., leo-paul, d., & vanessa, r. (2017, 2). ICT, Innovation and Firm Performance: The Transition Economies Context. thunderbird international business review, 59. doi: https://doi.org/10.1002/tie.21772
- shu-chun, h., robert, j., & ting-peng, l. (2011, 12 8). Internet-based selling technology and e-commerce growth: a hybrid growth theory approach with cross-model inference. Information Technology and Management, 12, 409–429. Récupéré sur https://link.springer.com/article/10.1007/s10799-010-0078-x
- sotiris, K., & sophia, p. (2007, 8 29). Information Technology as a Factor of Economic Development: Evidence from Developed and Developing Countries. Economics of Innovation and New Technology, 16, 179-194. doi: https://doi.org/10.1080/10438590600661889
- Štefan, b., & emre, F. (2012). Broadband availability and economic growth. Industrial Management & Data Systems, 112. Récupéré sur https://www.emerald.com/insight/content/doi/10.1108/02635571211278938/full/html
- stefanie, A., & sean, l. (2015, 2). Broadband adoption and firm productivity: Evidence from Irish manufacturing firms. Telecommunications Policy, 39, 1-13. doi:https://doi.org/10.1016/j.telpol.2014.10.003
- sunday, c. e., vera, c. c.-e., & adenike, o. b. (2018, 6 11). Actors and emerging information, communications and technology (EICT) adoption: A study of UK small and medium services enterprises. Cogent Business & Management. doi:https://doi.org/10.1080/23311975.2018.1480188
- t.w, s. (1956). ECONOMIC GROWTH and CAPITAL ACCUMULATION. economic record, 32, 334-361. doi: https://doi.org/10.1111/j.1475-4932.1956.tb00434.x
- walter, m., gary, m., & chen, w. (2019, 3 14). Broadband and economic growth: a reassessment. Information Technology for Development, 26, 128-145. doi: https://doi.org/10.1080/02681102.2019.1586631
- Westerlund, J. (2007). Testing for Error Correction in Panel Data. oxford bulettin of economics and statistics, 69, 709-748. doi: https://doi.org/10.1111/j.1468-0084.2007.00477.x