Determinants of information and communication technology (ICT) adoption in developing countries

Zaheer Uddin Farooqi

doi:10.17485/ijst/v13i39.797

Abstract

Background/Objective: The adoption of Information and communication technology (ICT) in developing countries is increasing during last two decades. This study explores the determinants of ICT adoption in 67 selected developing countries. Methods/Statistical analysis: Panel data was collected from World Bank and International telecommunication websites for the period of 2000 to 2018. This study explores the impact of access to electricity, ICT good imports, financial development index, GDP per capita, urban population, control of corruption and government effectiveness on ICT adoption. Selected developing countries are divided into four panels such as low income, lower middle, upper middle and high income countries. Pesaran CSD, Friedman CSD and Frees CSD tests are used to check the presence of cross-sectional dependency in the panel data. The results confirmed the presence of crosssectional dependency in the variables and hence CIPS second generation unit root test is used for stationarity. Kao test is used to check the long run cointegration among the variables. FMOLS is used for regression analysis. Findings: The regression results show the mixed findings in different panels. The results indicate that access to electricity is an important determinant of ICT adoption in low and lower middle income developing countries. ICT imports and Government effectiveness are among the significant determinants of ICT adoption in low, upper middle and high income developing countries. GDP per capita is an important variable for each panel. Urban population is found to enhance ICT adoption in lower middle and high income developing countries. It is recommended that Government should focus on these important determinants to increase the ICT adoption in selected developing countries. Novelty/Application: ICT development index is used as a dependent variable instead of components of ICT such as internet, mobile phone and computer penetration. New econometrics techniques and variables are used in analysis.

Highlights

In the modern era, information and communication technology (ICT) has a significant contribution in all over the world in productivity, growth and efficiency
It is guideline for the policy-maker should focus on electricity supply in above said both panels because it has great impact on ICT adoption in lower and lower middle income developing countries
The results show that it is important determinant for ICT adoption in developing economies but average ICT good imports ratio is low in lower (4.001 %), upper (4.355%) and high income (4.680%) economies

Summary

Introduction

Information and communication technology (ICT) has a significant contribution in all over the world in productivity, growth and efficiency. ICT is the combination of hardware, software, telecommunication and information techniques that are used to store and transform information [1]. It has transferred modern technology in all developing sectors. ICT includes variety of technologies such as computers, broadcasting networks, multimedia, microprocessors, telecommunication & information processing, ICTs related modern technologies services and operation at both organizational and individual levels. It has brought revolutionary changes in traditional economies [2]. It promotes institutional changes in the countries like United States and Finland [5]

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Conclusion