Information and communication technology (ICT) as a key determinant of performance in fintech firms: a study of China vs India

Information and communication technology and economic growth in India

The increasing use of information and communication technology (ICT) in this digital era and its interlinkage with other economic and environmental factors have gotten considerable attention from researchers. ICT tools are considered very important in economic activities such as international trade, the financial sector, and foreign direct investment. ICT is also interlinked with innovation and energy consumption. However, ICT with these activities influences ecological footprint, especially in emerging economies such as BRICS (Brazil, Russia, India, China, and South Africa) countries. Therefore, this topic has got considerable attention from researchers and policy makers on the impact of ICT and economic growth activities on environmental quality. Consequently, this study investigates the impact of information and communication technology, renewable energy consumption and innovation on carbon dioxide emission in BRICS countries from 1990 to 2019 using cointegration, generalized least square, and panel corrected standard errors models. The findings show that two ICT indicators, mobile cellular subscription and fixed broadband subscription, negatively affect carbon emission along with economic growth and financial development. Innovation and renewable energy consumption also significantly reduce emission in presence of ICT indicators, while trade openness and fixed telephone subscriptions increase it. In the case of the ICT index model, all variables are positively associated with carbon emission except renewable energy consumption, however, the square and interaction term of all indicators significantly reduce carbon emission and evidence the environmental Kuznets curve hypothesis except trade openness. ICT growth should be considered in the energy sector, innovation, and financial development to enhance environmental quality. The findings of the study have considerable policy implications for the sample countries.

Research background The growing importance of information and communication technology (ICT) in every facet of life motivated this study to examine the association between ICT, financial development and economic growth. Purpose The purpose of the study is to establish if there is a causal relationship among ICT, financial development and economic growth using annual data from 1990 to 2021. Research methodology The study used ARDL bounds test for cointegration and the error correction model (ECM) – based Granger causality technique to examine the causal relationship between the three variables. Three proxies for ICT: the number of fixed telephone subscriptions per 100 people, the number of individuals using the internet as a percentage of the total population, and the number of cellular subscriptions per 100 people were used. Results The study found the causality between ICT, financial development and economic growth to vary depending on the ICT proxy used. A unidirectional causal flow from ICT to economic growth was found to predominate in the long run when two out of three ICT proxies were considered. The study also found bidirectional causality between ICT and financial development to dominate in the short run when two out of three ICT proxies were considered and a unidirectional causal flow from ICT to financial development in the long run when all three ICT proxies were considered. Novelty The study departs from the current literature on the causal relationship between ICT, financial development and economic growth by employing three proxies of ICT, namely the number of telephone subscriptions per 100 people, the number of cellular subscriptions per 100 people and the number of individuals using the internet as a percentage of the total population.

The aim of this study to investigates the impact of Information and Communication Technology (ICT) development on economic growth in Sudan. Annually data over the period (1980-2014) of economic growth (GDP), Information and Communication Technology ICT (Fixed phone line, mobile cellular and internet subscribers per 100 inhabitants) and macroeconomic factor (Gross fixed capital formation and labor force) were modeled Using the bound testing approach to co integration and Error Correction Model (ECM), developed within an Autoregressive Distributed Lag (ARDL) framework, the study investigates whether a long-run relationship exists among the variables. From the results, it is evident that there is an existence of a long run relationship between ICT and economic growth. The short run dynamic model also reveals that the speed of convergence to equilibrium is moderate implying that there is a short run relationship between ICT and economic growth.

Introduction A specific international discourse dominated development theory and practice in much of the 1990s. The issues were framed around the utility of information and communication technologies (ICTs) for socioeconomic development. This attracted the attention of many developing countries especially in Africa still reeling from the effects of the lost decade of the 1980s and structural adjustment programs. Also, there was continental interest in the prospects of information and communication technologies for development (ICT4D). This was expressed by organizations such as the United Nations Economic Commission for Africa (UNECA) and the New Partnership for African Development (NEPAD). Unlike many countries in Africa, Uganda responded to the ICT4D debates early on. However, while it was pioneer by getting head start through its various initiatives and programs, it was not until 2005 that it finally articulated systematic policy on ICTs as fundamental tools for socioeconomic development. The began with the Ugandan Communication Act, enacted in 1997. It was response to the 1996 mandate of the UNECA-sponsored African Information Society Initiatives (AISI) for African countries to formulate policies that would accelerate their advancement toward the global information society. For many countries, the interest in creating an information society immediately led to the deregulation of the telecommunication sector. Policies on the telecommunication also provided oversight to the Internet sector at the initial stage. The creation of an appropriate policy framework for both the telecommunication and Internet sectors was the central purpose of the Ugandan Communication Act. The Act was itself implemented through the highly influential Ugandan Communications Commission (UCC). Uganda presents an interesting case for an examination of the application of ICTs for development in an African for two major reasons. First, the was one of the earliest to respond to the discourse that made the connection between ICTs and socioeconomic development. While some countries were still trying to understand the substance of the debates, the Ugandan government had already enacted the Communication Act to provide a framework for the development of telecommunication sector in the country (UNECA, 2009). That act unwittingly set model for ICT policymaking in other African countries where telecommunication policies became the proxies of state interventions in the sector. An important part of the Communication Act was the role that it assigned to the Ugandan Communications Commission (UCC) The UCC implements the provisions of the Ugandan Communication Act by controlling and promoting developments in the partially deregulated telecommunication sector (broadly defined to include all ICTs). The Commission's major mandate was the integration of universal access provisions in the delivery of communication and information services in the country. The Commission works to improve communication services generally and to ensure equitable distribution of services throughout the country (Ugandan Communications Commission [UCC], 2008, p. 10). Another aspect of its mandate was the establishment of the Rural Communication Development Fund (RCDF) which was expected to prevail on telecommunication operators to provide 2.5% of their growth revenues for rural communication services. The evolution of ICTs in Uganda and the gradual journey toward an information society--at least going by the standards of the International Telecommunication Union (ITU)--raise important issues for research, some of which we explore in this article. Arguably, there is nothing significantly remarkable about the growth of ICTs in Uganda. Yet there is sense of measured and progressive steps toward the future as the different technologies continue to diffuse widely over the years. Our study examines this spread of ICTs in Uganda with an emphasis on Internet connectivity and the manner in which access to the Internet has become coping mechanism, if not conflict resolution strategy, in war-torn Northern Uganda. …

The document analyzes the relationship between FDI (Foreign Direct Investment), ICT (Information and Communication Technology), and economic growth in Morocco for the period from 1990 to 2021 using the ARDL model. Three models have been evaluated, with economic growth, FDI, and ICT as dependent variables in each respective model. In model (1), the results indicate that in the short term, economic growth is not positively related to FDI and ICT. However, in the long term, FDI positively contributes to economic growth, while ICT negatively affects it. A controlled inflation rate has a positive short-term effect, and the level of education shows a positive relationship in both the short and long term. In Model (2), economic growth and government spending have a significant short-term effect on FDI, while ICT has no effect. In the long term, economic performance and inflation remain important for FDI. Model (3) confirms a significant short-term relationship between FDI and ICT, with a negative impact. However, ICT is positively influenced by the inflation rate and the level of education. In the long term, FDI, demographic changes, and education have favorable and significant effects, while economic growth has a negative impact. Regarding the Granger causality test by Toda-Yamamoto, the cause-and-effect relationship between ICT and economic growth is strong and unidirectional, while economic growth influences the level of ICT development. On the other hand, the causality between FDI and ICT concerning economic growth is indirect and depends on factors such as population growth, education level, and inflation rate. JEL classification numbers: C190, F21, F30, L96, O55. Keywords: Economic growth, FDI, Information and Communication technology, ARDL model, Toda-Yamamoto causality.

The adoption of Information and Communication Technology (ICT) is one of the key factors explaining growth discrepancies across countries in general and in the Kingdom of Saudi Arabia in particular. ICT has been the most dynamic component of investment in recent years, and until recently the explosive growth of investment in ICT has been at the center of the 'new economy' paradigm, shifting the Kingdom's reliance on growth away from oil. ICT investment contributes to capital deepening in all industrial and commercial sectors, thereby assisting in generating economic growth that is more sustainable in the long term. The main objective of this research study is to identify the impact of ICT investment in Saudi Arabia and the role that the government has played through its series of 'five year plans'. The current circumstances in Saudi Arabia relating to IT usage and development as well as the factors affecting economic growth are examined and analyzed. This research also assesses the strategies and policies relating to ICT and its investment in Saudi Arabia, and discusses the role of public and private organizations as well as educational institutions at all levels. The findings reveal that, despite the considerable strides made by the government, certain factors need addressing, in particular, the current state of the Kingdom's ICT infrastructure, the need for adequate numbers of skilled personnel to meet the anticipated growth in ICT, the need for educational establishments to incorporate ICT more fully into their programs, the need to develop the financial markets to facilitate further investment in ICT, and the need to raise the public's awareness of the importance of ICT to the county's prosperity. Accordingly, a number of recommendations are made.

In recent years, information and communication technology (ICT) and its impact on economic growth and CO2 emission has become a hot topic of debate; however, little research has been conducted regarding the impact of the interaction between ICT and economic growth on CO2 emission. The study tries to evaluate empirically the impact of ICT and economic growth on CO2 emissions of Tunisia and Morocco for the period 1980–2018, based on the Auto-Regressive Distributive Lag (ARDL) analysis. Findings demonstrate that ICT and economic growth affect positively and significantly the CO2 emissions in the short and long term in both Tunisia and Morocco; however, the direct and positive effect of economic growth on CO2 emissions can be ameliorated by introducing the interaction between ICT and economic growth. The Toda-Yamamoto Granger causality test reveals that bi-directional causality is running between economic growth and CO2 emissions in both countries. On the other hand, our obtained results express that there is a unidirectional causality running from ICT to CO2 emissions in both countries. So, the promotion of ICT can be considered one of the important strategies introduced to mitigate CO2 emissions. Then, introducing green ICT projects in various sectors of an economy is a better choice for policy makers to decrease the CO2 emissions.

Effect of information and communication technology on CO2 emissions: An analysis based on country heterogeneity perspective

Over the past decades, many economies observed that the development of Information and Communication Technology (ICT) has increased productivity in various industries. This paper empirically examines an economic growth convergence under the presence of the ICT by using panel data for 36 Asian countries from 1990 to 2017. The ICT can directly work as a driving force for productivity and indirectly as a technology propagator. As a technology propagator, the ICT deserves more attention as a source of technology diffusion. Despite many existing studies on the diffusion, theoretical studies have not yet incorporated the ICT into the diffusion issue in discussing the growth convergence. Responding to the unfilled gap in the literature, we impose a nonlinear functional form on the relation between the ICT and economic growth rate. In this paper, we employ a semi-parametric partially linear model (PLM) to relate the ICT elements to the growth convergence. In this paper, we compare fixed-effect results to the PLM results. Our results show that, controlling the ICT nonlinearly, the absolute size of the estimates for the GDP per capita increases as the frequency of growth rates becomes lower. We also find that, for the GDP per capita, the PLM estimates’ absolute values are greater relative to the fixed-effect results for all the frequencies. Our findings imply that considering nonlinearity of the ICT variable enhances understanding of economic growth convergence. We also perform the specification-fit test for PLM estimation and find that the nonlinear specification of the ICT variable is suitable. Further, we observe that the fitted curves of nonlinear functions are hump-shaped for all the frequencies. Then, it is implied that there can exist optimal level of the ICT for its contribution to the economic growth. In sum, all the results suggest that nonlinear modeling is a suitable empirical strategy for the relationship between the ICT and economic growth.

Information and communication technology (ICT) had been rapid developing by leaps and bounds. At the same time, global trade in financial services (TFS) also experienced a fast-growing stage. This article aimed to examine jointly ICT-growth nexus and TFS-growth nexus and to investigate whether the interaction between ICT and TFS facilitates economic growth in the context of China. There were two main findings in this article. First, we found that both ICT and TFS have significant and positive effects on economic growth, respectively. Second, the interaction between ICT and TFS exerted a significant but negative impact on economic growth. We then made a further discussion on the mediation role of TFS in the relationship between ICT and economic growth, and found the same evidence that TFS failed to mediate the relationship between ICT and economic growth. Finally, we pointed out policy implications drawn from our analyses and findings.

This study primarily examines the influence of Information and Communication Technology (ICT) on Digital Financial Consumer Protection (DFCP), utilizing a dataset spanning 88 countries globally from 2014 to 2018, within the context of consumer welfare under diverse socioeconomic conditions. The research confirms a positive relationship between information and communication technology (ICT) evolution and digital finance consumer protection (DFCP) in OECD countries with inclusive institutions, competitive markets, and solid educational foundations. Conversely, a negative correlation is observed between ICT growth and DFCP in countries with moderate gender inequality. The study further confirms that ICT development positively influences DFCP due to contextual conditions (i.e. cybersecurity index, political stability, higher educational level, and market quality). Policy implications emphasize the need to address information inequality and protect consumer rights in the digital era. Measures to curb market monopolies of major tech companies and combat unauthorized data usage are recommended. Additionally, enhancing digital literacy is crucial for harnessing the benefits of ICT and promoting financial consumer welfare. Establishing a practical code of conduct aligned with market needs is also essential for ensuring consumer protection.

Research background South Africa’s tourism industry has been experiencing unstable growth in the past few decades due to different factors. Studies in different countries have documented the significance of information and communications technology (ICT), and financial development towards a country’s tourism growth. ICT and financial development may stimulate the growth of South Africa’s tourism industry. Purpose To investigate the extent to which ICT advancements and financial development influence tourism growth in South Africa, given that the country has relatively strong financial and ICT sectors. Research methodology The study used annual time-series data for the period 1989 to 2019, and the variables are financial development, ICT, and tourism growth. The data were analysed using the Autoregressive Distributed Lag (ARDL) model. Results The findings indicate the existence of a long-run relationship among the variables. Results for the long-run estimates show that only ICT has a positive and statistically significant effect on tourism growth. In the short-run, financial development has a positive significant effect on tourism growth, while ICT only registers a significant effect on tourism growth in the fourth lag, albeit negative. The policy implication of these results is that the South African government ought to promote financial development to ensure that money is available and accessible for investment in tourism businesses and for tourist spending. Furthermore, ICT upgrades are required by the government and tourism service providers to enhance tourism products and service accessibility for tourists from wider geographical locations. Novelty This study expanded the existing literature by assessing the effects of ICT and financial development on South Africa’s tourism.

Economic development and information and communication technology (ICT) are found to move together in the present day era of globalization. ICT can contribute significantly in economic development of a region by providing adequate information at the minimum of time and cost, thereby enhancing productivity in different sectors of an economy. This fact is substantiated by several studies (Kraemer & Dedrick, 2001; Pohjola, 2001). Some country specific studies like that of Singapore (Wong, 2001) also highlighted similar results. ICT diffusion in the world has been quite rapid since the mid 1990s. While the developed countries have benefited substantially from the ICT growth, the developing countries could not reap similar benefits out of it which has resulted in emergence of a digital divide across the countries (Economist, 2000; Nkrumah, 2000; Norris, 2001). This divide is noticed not only across countries but also within a country and this is more prominent in developing economies like India. ICT diffusion is another area which needs more attention in India as it will lead to ICT access and application of ICT in real sectors to increase productivity and output. During the past one decade India has made rapid advances in ICT growth as reflected in the increase in the number of Internet connections and users. The growth of Internet connections and users in the country is shown in Table 1.

Economic development and information and communication technology (ICT) are found to move together in the present day era of globalization. ICT can contribute significantly in economic development of a region by providing adequate information at the minimum of time and cost, thereby enhancing productivity in different sectors of an economy. This fact is substantiated by several studies (Kraemer & Dedrick, 2001; Pohjola, 2001). Some country specific studies like that of Singapore (Wong, 2001) also highlighted similar results. ICT diffusion in the world has been quite rapid since the mid 1990s. While the developed countries have benefited substantially from the ICT growth, the developing countries could not reap similar benefits out of it which has resulted in emergence of a digital divide across the countries (Economist, 2000; Nkrumah, 2000; Norris, 2001). This divide is noticed not only across countries but also within a country and this is more prominent in developing economies like India. ICT diffusion is another area which needs more attention in India as it will lead to ICT access and application of ICT in real sectors to increase productivity and output. During the past one decade India has made rapid advances in ICT growth as reflected in the increase in the number of Internet connections and users. The growth of Internet connections and users in the country is shown in Table 1.