Comparing the Effect of Information and Communication Technologies (ICTs.) on Economic Growth of Selected Developed and Developing Countries

Document Type : Research article

Author

aliireza erfani

https://doi.org/10.22067/erd.v1391i3.20256

Abstract

Comparing the Effect of Information and Communication Technologies (ICTs.) on Economic Growth of Selected Developed and Developing Countries

Alireza Erfani
Assistant Professor, Faculty of Economics, Semnan University
Saeedeh Akbarzadeh Tabrik
M.A. in Economics, Semnan University
Mohammad NodehFarahani
M.A. in Economcs, Allameh University

Abstract
Studies about the effect of the ICT on the economic growth of developed countries in 1990s, have shown strong and positive direct relationship between ICT and economic growth in these countries. After a short period, this interactive relationship arises in some of the developing countries. But, since these countries have no necessary competition environment and have weak infrastructure, the condition of ICT’s effect on economic growth can be debatable.
Following Quah (2003) and Pojola (2002), in this study we survey and compare the effect of ICT on the economic growth of chosen developed and developing countries, using investment in ICT, capital stock, manpower, posts graduate registration number of students, and direct foreign investment data of 1995- 2006.
We estimate the parameters of the mode with panel data method. With regarding to the comparable methodology of the research, we use a dummy variable in the model for analyzing in this way.
The results indicate a positive and high significant relationship between economic growth and ICT in all chosen countries but stronger for developed countries.

Key words: information and communication technology (ICT), investing in ICT, economic growth

Keywords

information and communication technology (ICT)

investing in ICT

Economic Growth

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