Abstract
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.
Highlights
Explaining the sources of economic growth has ranked amongst the most significant issues that economists have examined
Before applying Autoregressive Distributed Lag (ARDL), the Augmented Dickey-Fuller (ADF) test was employed to test the stationary of time-series data considered under the study and the results are presented in Table (1), Information and Communication Technology (ICT) indicators are stationary at I(0) and the other variables are integrated at I(1) and we should apply ARDL bounds testing approach to co integration to test long run relationship between the variables
CONCLUDING REMARKS AND RECOMMENDATIONS This study employed the Augmented Cobb-Douglas production function to investigate the relationship between information & communications technology and economic performance
Summary
Explaining the sources of economic growth has ranked amongst the most significant issues that economists have examined. This study is attempted to investigate how ICT development affects economic growth in Sudan This issue is important and has received considerable attention in the popular press concerning the creation of the "information superhighway" and its potential impacts on the economy. Most studies in developed and industrialized countries report that ICT plays a key role in economic performance during the 90s, such as Lau and Tokutsu (1992) examined the relationship between ICT and economic growth in US over the period 1960-1990 using the production function approach. DATA AND METHODOLOGY The study uses ICT variables data covering the period from 1980-2014 extracted from the International Telecommunication Union (ITU), such as (fixed telephone line and mobile cellular telephone (FIXMOB) and internet (INT) subscribers per 100 inhabitants) used as a proxy for ICT infrastructure. The stability tests such as cumulative sum of recursive residuals (CUSUM) and cumulative sum of squares of recursive residuals (CUSUMSQ) are applied to test the goodness of fit for ARDL model
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