Impact analysis of information communication technology (ICT) and education on Vietnam's economic growth

Abstract

This paper analyzes the impact of information communication technology (ICT) and education on economic growth at the provincial level in Vietnam. Based on data from 63 provinces/cities within the period 2010-2018, the authors apply the Panel Data Analysis approach, including Pooled OLS, FEM, and REM models, to examine the effects of ICT and education on economic growth in these provinces/cities. Its findings demonstrate that regarding the education effects, whereas the public expenditure on education and the primary school enrollment ratio have a positive influence on the economic growth, the rate of higher levels of enrollment shows no impact on the economic growth. On the other hand, in terms of the ICT effect, while increased mobile phone usage and broadband subscription rate has a positive impact on economic growth, there is an inverse relationship between landline telephone usage rate and economic growth. Moreover, the results also show that there is no relation between internet usage rate and economic growth. In addition, with the research level being provinces/cities, the analysis results clearly show the detail and specificity, creating conditions for making statistics and comparisons to differentiate between each province/citys. Based on data analysis results, this research promotes some interventions and macro policies in order to assist economic planners in providing solutions that are focused and suitable to each particular region, paving the way for synchronous and effective economic development across Vietnam's economic regions in years to come.