Information and Communication Technology (ICT) and economic growth in Iran: Causality analysis

Mohammad Haghshenas, Hasmiah Kasimin, Madeline Berma

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Iran is currently implementing policy measures to increase the contribution of Information and Communication Technology (ICT) to economic performance. However, little attention is given to examining whether ICT investment contributes to the economic growth of Iran. Concerning the importance of the causal link between these two variables to national policy implications, the present study employs a Granger causality analysis to examine the cause and effect relationship between ICT infrastructure and output growth in a multivariate setting that includes labor and capital variables. The results indicate that a long-run equilibrium relationship exists between ICT development and economic growth. Furthermore, the findings provide evidence of significant uni-directional short-run causality running from economic growth to ICT development in the Iranian economy. In terms of policy implications, the findings support the idea that this relationship is sustainable. However, in the short-run, investing in other important sectors and promoting ICT-use should be a priority for boosting the development of the national economy and ICT.

Original languageEnglish
Pages (from-to)55-68
Number of pages14
JournalJurnal Ekonomi Malaysia
Volume47
Issue number2
Publication statusPublished - 2013

Fingerprint

Causality
Iran
Information and communication technology
Economic growth
Short-run
Policy implications
Technology development
Policy measures
Investing
Granger causality
Technology use
Boosting
Technology investment
Technology infrastructure
Labor
National economy
Economic performance
Output growth
Long-run equilibrium

Keywords

  • Causal relationship
  • Economicgrowth
  • ICT infrastructure
  • Iran's ICT

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)

Cite this

Information and Communication Technology (ICT) and economic growth in Iran : Causality analysis. / Haghshenas, Mohammad; Kasimin, Hasmiah; Berma, Madeline.

In: Jurnal Ekonomi Malaysia, Vol. 47, No. 2, 2013, p. 55-68.

Research output: Contribution to journalArticle

Haghshenas, Mohammad ; Kasimin, Hasmiah ; Berma, Madeline. / Information and Communication Technology (ICT) and economic growth in Iran : Causality analysis. In: Jurnal Ekonomi Malaysia. 2013 ; Vol. 47, No. 2. pp. 55-68.
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