Information and Communication Technology Use and Economic Growth

Maryam Farhadi, Rahmah Ismail, Masood Fooladi

Research output: Contribution to journalArticle

40 Citations (Scopus)

Abstract

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.

Original languageEnglish
Article numbere48903
JournalPLoS One
Volume7
Issue number11
DOIs
Publication statusPublished - 12 Nov 2012

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Economic Development
information technology
communications technology
economic development
Technology
Economics
Communication
Internet
economists
Internationality
globalization
research methods
Growth
Method of moments
income
Research Design
Availability
economics

ASJC Scopus subject areas

  • Agricultural and Biological Sciences(all)
  • Biochemistry, Genetics and Molecular Biology(all)
  • Medicine(all)

Cite this

Information and Communication Technology Use and Economic Growth. / Farhadi, Maryam; Ismail, Rahmah; Fooladi, Masood.

In: PLoS One, Vol. 7, No. 11, e48903, 12.11.2012.

Research output: Contribution to journalArticle

Farhadi, Maryam ; Ismail, Rahmah ; Fooladi, Masood. / Information and Communication Technology Use and Economic Growth. In: PLoS One. 2012 ; Vol. 7, No. 11.
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