Identifying Information and Communication Technology as a Key Factor in the Development of the Infrastructure Sector of East Azerbaijan Province: A Multisectoral Analysis (MSA) Approach

Document Type : Original Article

Authors

• zeinab baradaran ¹
• zahra azari ¹
• hossein panahi ²

¹ PhD student in Economics, University of Tabriz

² Professor of Economics, University of Tabriz

https://doi.org/10.22067/erd.2022.68749.1011

Abstract

Extended abstract
1-INTRODUCTION
Economic theories and experiences of different countries show that there are different paths for economic growth and development, and the rate of growth and development depends on what sectors of the economy to invest in. the growth rate also varies according to the sectors in which it is invested. for this reason, the production system is usually divided into two parts: production and consumer goods, and it is often said that the productive goods sector is the driving force of growth. therefore, in the long run, maximizing growth depends on allocating as much investment as possible to key sectors of the economy.
2-THEORETICAL FRAMEWORK
In general, growth and development theories are classified into three main groups in order to identify the importance of economic sectors and how resources are allocated: balanced growth theory, unbalanced growth theory and growth pole theory. Rosenstein-Roden (1943), the founder of the theory of balanced growth, argues that one sector alone cannot provide economic development, but if several sectors start producing with increasing and related returns, so that each demand for the product provide another, economic development will be possible. due to the skepticism of the theory of balanced growth, the theory of unbalanced growth was proposed in the economic literature by Hirschman (1958).  according to this theory, investment should be made in sectors so that the benefits of this investment penetrate into other economic sectors and investment conditions are provided in these sectors. in this theory, Hirschman (1958) believes that in order to achieve development, we have to choose one or more projects from different investment plans, according to our possibilities. other categories of theories for providing a path to development are known as growth pole theories. other categories of theories for providing a path to development are known as growth pole theories, first proposed by Peru (1968) in the economic literature. Peru’s innovative concept is actually derived from Schumpeter’s idea that growth is a direct and indirect product of innovation. in Peru’s theory, simultaneous growth does not occur everywhere, but at points or poles of development that have high gravity. these points spread development through channels and affect the entire economy.
3- METHODOLOGY
The aim of this study is to identify the key core of the infrastructure sector of East Azerbaijan province with the multi-sector analysis (MSA) approach. In the first step, this research extracts information and communication technology as the key subdivision of the infrastructure sector of the province using MSA analytical model and Excel software and extracts the most important criteria in this sector. In the next step of this study, the SWOT method examined the strengths and weaknesses, opportunities and threats of the key core extracted from the MSA analysis, and using the Quantitative Strategic Planning Matrix (QSPM) method, the proposed strategies were prioritized.
4- RESULTS & DISCUSSION
The results indicate that at the level of subsectors, ICT as a key core with 0.72 points and at the level of criteria, creating high added value, improving production capacity (process, equipment and technology) and absorption. Foreign capital is the most important, respectively. On the other hand, information and communication technology is also known as the most influential and influential sub-sector. Research findings show that information and communication technology has not found its proper place in East Azerbaijan province.
5- CONCLUSIONS & SUGGESTIONS
Findings show that information and communication technology in East Azerbaijan province has not found its proper place and if the province wants to progress in this area, the strategies of the Defensive Group (WT), which is based on reducing weaknesses and avoiding threats, should be given priority. According to the results, the strategy of providing a suitable platform for e-businesses and creating a provincial unit for empowering Internet businesses to increase information security and empower ICT professionals and business idea owners in East Azerbaijan Province is recommended.

Keywords

• Information and Communications Technology
• MSA Analytical Model
• East Azerbaijan Province

Main Subjects

• Regional Urban Economy

References

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