Abstract

PurposeThis study examines the causal relationship between information communication technology (ICT) and economic growth in high-income and middle-income Asian countries.Design/methodology/approachThis study utilises a high-quality data from 25 Asian countries from 2000 to 2018. This study presents the robustness results by employing panel cointegration and estimation procedures to account for the endogeneity and cross-sectional dependence issues.FindingsThe results illustrate that high-income Asian countries have achieved positive and significant economic development from high Internet penetration. Additionally, the middle-income countries have started to benefit from ICT Internet. The findings show that the telephone line and mobile phone penetration is highly capable of promoting economic growth in middle-income Asian countries.Practical implicationsIn high-income Asia countries, an appropriate ICT infrastructure policy will support feasible ICT penetration, which may drive the processes of economic development and innovation that contribute to economic growth. Moreover, in middle-income Asian countries, the establishment of better-quality ICT service and infrastructure is more critical. Policymakers should accommodate sufficient support to establish the ICT infrastructure and expand ICT penetration.Originality/valueThis study reveals that high-income Asian countries have been more proactive and effective than middle-income countries in embracing ICT to foster economic growth. Examining the case of high-income and middle-income Asian countries provides comprehensive insight for policymakers regarding the relevance of ICT in boosting economic growth through the advantages of technology expansion.

Highlights

  • Recent investments have promoted considerable growth in the telecommunications industry and have become one of the significant drivers of economic growth in several other critical sectors

  • This study aims to examine the causal relationship between economic growth and three Information and communication technology (ICT) indicators in Asia

  • This study examined the linkage between ICT development and economic growth in highand middle-income Asian countries by using three ICT indicators (Internet usage, mobile phone usage and fixed telephone usage)

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Summary

Introduction

Recent investments have promoted considerable growth in the telecommunications industry and have become one of the significant drivers of economic growth in several other critical sectors. Information and communication technology (ICT) facilitates information exchange and influences modern society. Due to the effects of the ICT revolution, a paradigm shift is taking place in human development, which refers to the process of expanding the range of choices for society, such as education, healthy life and living standards (Yakunina and Bychkov, 2015). The impact of innovation and technology expansion on economic development has long been recognised. ICT increases the availability of information, forms new communication. Published in Journal of Asian Business and Economic Studies. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/ legalcode

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