Diffusion Of Information And Communication Technologies Research Articles

Impact of ICT diffusion and opportunity entrepreneurship on environmental sustainability in Saudi Arabia

The need to prioritize sustainable development is expanding in light of the world's environmental concerns. To address these concerns, entrepreneurship is essential as a catalyst for inventions, economic expansion, and social change. Entrepreneurship activities have direct and indirect effects in the face of environmental risks and uncertainties. This study addresses gaps in understanding entrepreneurship's non-linear and complementarity effects, particularly opportunity-driven entrepreneurship and information and communication technologies (ICT), on the quality of the environment in Saudi Arabia. The dynamic ordinary least squares (DOLS) method is used to estimate long-run relationships. Saudi Arabia will be the perfect context for sustainability because the country has prioritized sustainability through its Vision 2030, and the Saudi government has substantially supported entrepreneurship. The main contribution of this paper to the existing literature is evident in its examination of the quadratic relationships between both opportunity-driven entrepreneurship and ICT diffusion, including ICT access, use, and skills, on environmental quality. In addition, the study delves into the ICT diffusion's modulating effects on the nexus of opportunity entrepreneurship with environmental quality, providing insights into how these factors can effectively improve environmental quality. The findings show that opportunity entrepreneurship and ICT diffusion initially deteriorate environmental quality before leading to improvements as their levels mature in the economy. Moreover, interactions between ICT proxies and opportunity entrepreneurship yield mixed effects, with negative net effects on CO2 emissions and ecological footprint countered by positive net effects on the environmental performance index. These findings highlight the dual role of ICT diffusion as a contributor to environmental challenges and a potential solution, depending on the level of its diffusion and interaction with entrepreneurial activities. Therefore, policymakers should create plans that encourage and direct business activity toward more environmentally friendly methods. They should also consider the short- and long-term effects of growing digital technologies on environmental sustainability and how they might revolutionize how entrepreneurship and sustainability goals are aligned.

ICT diffusion, E-governance, and sustainability in the digital era

This study analyses the impact of information and communications technology (ICT) diffusion and e-governance on sustainability in 148 Belt and Road Initiative (BRI) partner countries. It considers control variables such as institutional quality, urbanization, research and development (R&D), and the COVID-19 effect as dummy variables. Two step-generalised method of moments analysis of a panel dataset of 148 BRI partner countries from 2013 to 2021 reveals that ICT diffusion and e-governance benefit sustainability, with R&D and institutional quality also making positive contributions, while urbanization and the pandemic negatively impact sustainability. The findings were validated through D-K regression checks and support the technology spill-over effect, innovation, triple bottom line, endogenous growth, and stakeholder theories. They highlight the significance of investing in ICT infrastructure and digital literacy programs, improving institutional reforms and governance practices, putting sustainable urban planning into practice, and supporting R&D projects to advance sustainability in BRI partner nations. This study clarifies the potential problems brought forth by the pandemic and makes suggestions for reducing its negative effects on sustainability. It contributes to evidence-based decision-making, guiding sustainable practices in BRI partner nations.

Towards economic growth in Sub-Saharan Africa: is there a synergy between insurance market development and ICT diffusion?

ABSTRACT This study contributes to the literature by investigating the intervening role of information and communication technology (ICT) diffusion on insurance and economic growth in Sub-Saharan Africa (SSA). This study uses the generalized method of moments technique based on 36 countries, spanning 2007–2020. First, the empirical findings reveal that insurance penetration (i.e. total, life and nonlife) and ICT diffusion induce economic growth in SSA. Second, the evidence suggests that ICT boosts the role of insurance in affecting economic growth. Third, the individual ICT variables such as fixed broadband, telephone and internet propel the impact of total and life penetration on growth. Additionally, fixed broadband was remarkable in enhancing the effect of nonlife penetration on growth. The findings imply that though insurance enhances economic growth, its impact is more revealing through the intervening role of ICT infrastructure. Therefore, insurers must embrace technology and leverage ICT development to improve their performance on growth.

Information technology investment and rural bank performance in Ghana: the moderating role of ICT diffusion and financial development

PurposeThis study sought to examine the interaction between rural bank performance, information and communication technology (ICT) investment, ICT diffusion and financial development.Design/methodology/approachData were sourced from the Association of Rural Banks (ARB) Apex and World Development Indicators (WDI) for the period 2014–2020. A total of 122 rural banks were used for this study. The study adopted the two-step system generalized method of moments (SGMM) estimation technique in assessing the interactions among variables.FindingsThis study found compelling evidence to support the positive effect of ICT investment on banks’ performance (return on asset and net interest margin). Further, ICT diffusion and financial development positively influence banks’ performance. The results show a positive moderating effect exerted by ICT diffusion and financial development on the impact of bank risk (bank stability) and ICT investment on all three performance measures.Originality/valueThe study focuses on the rural banking sector in the Ghanaian economy, compared to related studies that examine the subject matter for commercial banks. The moderating effects of ICT diffusion and financial development are assessed to guide policy on rural banking development in Ghana.

How do digital financial inclusion, ICT diffusion, and education affect energy security risk in top energy-consuming countries?

Energy security has become a crucial issue as the world economy depends more and more on energy supplies. In the context of the top energy-consuming nations, this research examines the connection between digital financial inclusion, information and communication technology (ICT), education, and energy security risk from 2011 to 2022. To that end, the study applies the two-stage least squares and system generalized method of moments estimation techniques. According to our study's findings, digital financial inclusion and associated factors, including automatic teller machines, bank branches, debit cards, and electronic payments, mitigate energy security risks. The energy security risks are also reduced due to ICT, education, gross domestic product, and renewable energy production. However, carbon emissions increase energy security risks. These findings suggest that policymakers in top energy-consuming economies should focus on the digital inclusiveness of the financial sector, ICT diffusion, and human capital to increase the opportunities for investment in the energy sector to mitigate energy security risks.

International capital flows and sustainable development goals: The role of governance and ICT diffusion

Achieving the Sustainable Development Goals (SDGs) in developing economies, especially in sub-Saharan Africa (SSA), has become a focal point of discussion. This study contributes to this discourse by investigating the effects of international capital flows on SDGs in SSA, with a specific focus on the moderating mechanisms that influence these effects. Using data from 41 SSA countries spanning 2000 to 2018, the findings emphasize the crucial role of governance quality and ICT diffusion as effective factors moderating the nexus between international capital flows and SDGs. The study reveals a nuanced impact of international capital flows on sustainable development, encompassing both positive and negative effects across economic, social, and environmental dimensions. However, the presence of good governance practices and widespread diffusion of information and communication technologies (ICTs) serves as crucial conditional factors, enhancing the positive effects of international capital flows on economic and social sustainability while simultaneously mitigating their potential adverse effects on environmental sustainability. Through improvements in governance structures and the promotion of ICT diffusion, policymakers can create an environment conductive to maximizing the benefits of international capital flows while minimizing their adverse repercussions, thereby fostering sustainable development in sub-Saharan Africa.

Promoting entrepreneurship for sustainable development: Are education capital and ICT diffusion important?

AbstractThis article makes a valuable contribution to the existing literature on sustainable entrepreneurship by investigating the impact of entrepreneurship (both opportunity‐driven and necessity‐driven) on the achievement of sustainable development (SD) across its three dimensions. Additionally, it explores the underlying mechanisms through which this relationship is influenced. Specifically, the study examines the role of education capital (including education levels and government spending on education) and information and communication technology (ICT) diffusion (access, usage, and skills) in facilitating this relationship. The analysis focuses on data from Saudi Arabia and utilizes the Dynamic Ordinary Least Squares (DOLS) estimator. The findings indicate that only opportunity entrepreneurship exhibits a positive influence on SD. Furthermore, the study reveals that the positive impact of opportunity entrepreneurship is amplified through its interaction with government spending on education and tertiary education, leading to favorable indirect net effects on SD at both aggregated and disaggregated levels. Similarly, the interaction between opportunity entrepreneurship and ICT usage, as well as access, generates positive indirect net effects on SD across aggregated and disaggregated levels. Therefore, education capital and ICT diffusion are indeed key mechanisms that foster opportunity‐driven entrepreneurship for achieving SD. Education equips individuals with the necessary skills and mindset, whereas ICTs provide access to information, markets, and tools for business efficiency and innovation. By investing in education and promoting the widespread adoption and accessibility of ICTs, governments can empower individuals to become successful entrepreneurs while driving sustainable economic, environmental, and social progress.

Digital Divide among Education Teachers in Northeastern College of Santiago City

Information and communication technologies (ICTs) have been revealed as key potential factors for economic growth and social development. The diffusion of ICTs drives access to information and knowledge; the uneven distribution of ICTs within or between societies may result in their having a very uneven impact on economic development and wealth. The digital divide has become an extremely important issue for many international organizations and a major challenge for policymakers and academic researchers. To gain insight into the digital divide among basic education teachers in Northeastern College Santiago City, the researcher a quantitative approach where all the education teachers in Northeastern College Santiago City were the respondents of the study. In gathering the data and information needed for the study, the following instruments are used: questionnaire and structured interview. The researcher used Simple Frequency and Percentage Count and Weighted Mean. Initiatives aimed to equip classrooms and build teacher capability in technology use encounter acceptance, sustainability, and scalability challenges. Among all these issues, the most critical challenge is meeting digital equity among students, teachers, and administrations. For ICTs to empower education, there is a need to launch policies and initiatives that provide students and teachers with equitable access to digital technologies. The first and foremost prerequisite for the exploitation of ICT in education is ensuring adequate ICT access by teachers as well as by students. Keywords: Digital Divide, Information Communication Technologies

Towards ICT diffusion and trade liberalisation on inclusive growth in Sub-Saharan Africa

AbstractWhile the debate over the nexus between trade liberalization and inclusive growth is progressively reaching some consensus in emerging and developing economies, the empirical findings are mixed for sub-Saharan African (SSA) countries. Some of the SSA countries experience rapid growth in information and communication technology (ICT) diffusion manifesting in increased green wealth via the invention of new ideas, access to wider markets like the African Continental Free Trade Area (AfCFTA), promoting accountability, social inclusion, and e-governance among others. The present study critically assesses how ICT diffusion modulates trade liberalization on inclusive growth throughout the 2005–2020 periods for 48 SSA countries. This study contributes empirically and methodologically to literature, specifically on the construction of the ICT index, inclusive growth index, and adoption of a better befitting econometric model. The study explores the direct impacts of ICT diffusion and trade liberalization, and their indirect impacts using an interaction term on inclusive growth. Contrary to the prior expectations, trade liberalization does not lead to inclusive growth in the SSA region, but ICT diffusion has a positive and significant impact on inclusive growth. However, the interaction term of ICT and trade liberalization improves inclusive growth. Therefore, the study advocates for policies that would build a knowledge-based human capital, stimulate innovation in socio-economic systems, and develop ICT infrastructure and its penetration among others, with the expectation that as AfCFTA takes effect, ICT diffusion will facilitate intra-regional trade, enhancing inclusive growth in the African region among other sound policy suggestions.

Linkages between ICT diffusion, renewable energy consumption, and carbon emissions: a comparative analysis of SAARC, MENA, and OECD countries.

This paper examines the linkages between information and communication technology (ICT) diffusion, renewable energy consumption (REC), and carbon (CO2) emissions across three distinct regions: the South Asian Association for Regional Cooperation (SAARC), Middle East and North Africa (MENA), and Organization for Economic Cooperation and Development (OECD) nations. We explore the causal pathways linking these variables and perform a comparative assessment of region-specific patterns with their policy implications. Utilizing a panel dataset of 28 countries from 1998 to 2019, we employ panel ARDL, FMOLS, DOLS, and D-H causality tests. The comprehensive analysis of the sample reveals that ICT development enhances CO2 emissions, whereas REC reduces emissions. However, the comparative analysis suggests a positive linkage between ICT diffusion and CO2 emissions in MENA and OECD countries but a negative linkage in SAARC countries. Further, REC substantially reduces emissions in MENA and OECD countries but has an insignificant effect in SAARC countries. Our findings corroborate the first-order effect of ICT (negative environmental impact) in MENA and OECD countries, with contextual variations attributed to economic structure, financial sector growth, trade openness, and industrialization. These findings offer pivotal insights for policymakers to leverage ICT capabilities and REC to attain sustainable development and mitigate climate change consequences.

Information and communication technology diffusion, supply chain performance, health care and human development: A case of the South Asian region

South Asian countries have shown tremendous progress in information and communication technology (ICT) and have become one of the fastest-growing regions in technology, innovation, and business competitiveness. The pivotal role of ICT diffusion in the economic growth of both developed and developing countries is a well-established fact. Therefore, this research aims to examine the impact of ICT diffusion (especially the evaluation of ICT indicators) on three core outcomes, namely supply chain performance, health-care expenditures, and the Human Development Index in the context of South Asian economies. To measure ICT, we used three core ICT indicators (i.e., fixed broadband subscriptions, mobile phone subscribers, and internet users) individually as well as in the form of an index developed through principal component analysis (PCA). Panel data of South Asian economies ranging from 2007 to 2021 were used to estimate the equations. The outcomes revealed that all the variables were integrated at order one (1). Second, ICT had a long-run/equilibrium relationship with supply chain performance, health-care expenditures, and human development index. Third, the response of all individual ICT indicators as well as the ICT index on supply chain performance was positive and significant in estimated coefficients. Fourth, the ICT index and all ICT indicators had a positive influence on health-care expenditures. Finally, the ICT index and two out of three individual ICT indicators had a positive and significant influence on HDI. Interestingly, among all the three indicators of ICT, internet users were found to have more pronounced effects on the promotion of supply chain performance, health-care expenditure, and HDI. The more pronounced effect of internet users implied that policymakers should consider devising policies to promote ICT penetration with a core focus on internet penetration.

Information and Communication Technology (ICT), Growth and Development in Developing Regions: Evidence from a Comparative Analysis and a New Approach

AbstractThe majority of empirical literature acknowledges that information and communication technology (ICT) has a favourable effect on economic growth/development. Different studies, however, contend that this impact is modest or perhaps null, yielding inconsistent findings. In view of this complication, we therefore conducted a study with the aim to analyse the ICT diffusion-economic growth-development nexus for 73 countries over the period 2000–2018. The panel data was divided into three regions, namely sub-Saharan Africa (SSA), the Middle East and North Africa (MENA), and Latin America and the Caribbean (LAAC). For the analysis, the newly developed panel vector autoregression (PVAR) in the generalised method of moments (GMM) estimation approach was applied. Our findings suggest a long-run equilibrium relationship between the three variables. The findings differ from the causality results for the overall panel and each of the regions differs. The inconsistency in the causality results across the regions suggests that the level of ICT diffusion is still underdeveloped. The PVAR-GMM results reveal that (i) ICT diffusion is a significant and positive predictor of growth across the regions, with a greater effect reported in MENA; (ii) ICT diffusion is a significant and positive predictor of development across the regions with a lesser effect noticed in MENA. The study’s implication for academia and practice is that (i) it provides important information on the ICT diffusion-economic growth-development nexus within the context of the econometric approaches used, and (ii) policymakers and managers of telecom businesses should accommodate sufficient support to further establish the ICT infrastructures and expand its penetration for all round sustainable and inclusive growth and development purposes.

The Matthew effect: Evidence on firms’ digitalization distributional effects

This paper explores the relationship between Information and Communication Technologies (ICT) diffusion and labor productivity at the firm level. We propose a model that explains labor productivity based on firm-specific characteristics (sector, size, location and year fixed effects), on the level of diffusion of digital technologies, and on human capital. We use quantile regression techniques to gain a more precise understanding of the association between ICT's diffusion and labor productivity for a heterogeneous firm landscape. Our results show that more productive firms are able to extract higher gains from digitalization than low productive ones, which exacerbates productivity differences between them. This requires from a tailor-made policy agenda to promote firm convergence, focused on helping firms to extract the most of digitalization.

Information technology and financial development for achieving sustainable development goals

The present study aims to answer the question of the effectiveness of information and communication technologies (ICT) and financial development in achieving sustainable development goals (SDGs). Specifically, it examines the joint effects of ICT (mobile phone and internet use) and eight financial sector development indicators on achieving economic, social, and environmental sustainability in light of the SDGs using data from 48 Sub-Saharan African countries. Using the system Generalized Method of Moments, we found that (i) the four dimensions of financial development and both indicators of ICT increase economic, social, and environmental sustainability, (ii) increasing the access to mobile phones and the use of Internet contributes to the development of the financial sector, (iii) the contribution of financial sector development on the achievement of the SDGs increases with the presence of ICT. The study calls on policymakers to consider the diffusion of ICT and the advantages they offer in elaborating measures for achieving sustainable development goals.

ICT, Financial Inclusion and the Informal Economy: Evidence from Selected Latin American and Caribbean Countries

ABSTRACT Exploring effective tools to control the rampant expansion of the informal economy is critical to achieving the Sustainable Development Goals (SDGs). Based on balanced panel data for 19 selected Latin American and Caribbean countries for the period 2008–2017, this study employs fixed-effects estimation, limited information maximum likelihood estimation, and system generalized method of moments estimation to investigate the direct and indirect effects of information and communication technologies (ICT) diffusion on the size of the informal economy. The findings suggest that ICT diffusion can significantly reduce the size of the informal economy in LAC. Moreover, the dampening effect of ICT on the informal economy is more significant in countries with lower levels of financial inclusion. Accordingly, we recommend strengthening ICT sector development to enhance financial deepening and government efficiency and thus reduce informality in LAC.

Digital transformation in finance and its role in promoting financial transparency

A crucial issue in financial economics pertains to enhancing the transparency of accounting and financial reporting within companies. This paper focuses on China, aiming to quantify the relationship between digital finance and financial accounting transparency from 1990 to 2021 using the autoregressive distributed lag bounds test. The results confirm that digital finance exerts a significant effect only in the long term; in the short term, it lacks the necessary efficacy to enhance financial transparency. The proliferation of information and communication technology (ICT) in China, in both the short and the long term, is a pivotal policy for augmenting accounting transparency. Moreover, an increase in both the short- and the long-term corporate income tax rate is poised to undermine the transparency of Chinese companies' financial statements. The foremost policy implications encompass the advancement of digital finance markets through cryptocurrencies, promotion of ICT diffusion policies, and enhancement of societal financial transparency literacy.

Unlocking the Synergy: ICT, Global Trade, and Growth in the GCC Region - A Panel-Causality Analysis

This study investigates the intricate relationship between Information and Communication Technology (ICT), global trade, and economic growth in the Gulf Cooperation Council (GCC) region over the period 1990–2022. The study Utilize a panel data framework covering the GCC member states over a significant time span, and employing an advanced econometric technique to assess the causal and cointegrated relationships among these key variables. Three tests, [1], [2], [2] Cointegration tests are applied to check for Cointegration. Additionally, fully modified least square (FMOLS) and dynamic ordinary least square (DOLS) will be used to test the magnitude of the long relationship among variables. The analysis integrates a comprehensive dataset that includes ICT indicators, trade flows, and macroeconomic variables, allowing for a robust examination of the synergy among these critical elements. The results reveal multifaceted relationships within the GCC context. While ICT is found to have a positive and significant impact on global trade and economic growth, the study also identifies bidirectional causality between ICT and global trade, indicating a reinforcing loop. Furthermore, evidence suggests that global trade plays a pivotal role in enhancing ICT diffusion within the region. The findings of this paper have several ramifications. First, they highlight the necessity for GCC governments to give priority to digitization and ICT infrastructure development activities in order to promote international commerce and economic diversification. Second, Policymakers should also consider crafting trade policies that facilitate the exchange of ICT-related goods and services, further fostering economic growth.

Environmental sustainability and health outcomes: Do ICT diffusion and technological innovation matter?

This research aims to determine the nexus between environmental sustainability, proxied by environmental performance index, and human health outcomes, particularly disability-adjusted life-year and life expectancy, in the presence of policy variables, namely information and communication technology (ICT) as well as technological innovation (TI) in Saudi Arabia for an annual period spanning from 2000 to 2020. We used the DOLS estimator to solve the issues of serial correlation and endogeneity that were present in the model. The findings indicate that the influence of environmental performance on human health outcomes is improved with the existence of good and sophisticated technologies. We find that over the long term, the parameters of the interaction terms between environmental performance and all dimensions of technological indicators are negative (positive) and statistically relevant for the disability-adjusted life-year (life expectancy) specification. Policymakers in Saudi Arabian economy should therefore include the use of technological indicators in the already established programs and policies to maximize their positive impacts on health outcomes.

Information and communication technologies and medium-run fluctuations

This paper explores the possibility that productivity improvements in information and communication technologies (ICT) are a source of medium-run fluctuations in total factor productivity (TFP) and economic activity. We document in a structural VAR setting that supply shocks in the ICT sector are followed by hump-shaped and long-lasting increases in TFP. Following the ICT literature, we use a two-sector model to suggest a mechanism behind the hump-shaped TFP response: that ICT is a general-purpose technology (GPT). Using impulse-response matching, we show that a model with a spillover from ICT capital is able to match the hump-shaped TFP response, hinting at the importance of the diffusion of ICT.

Does digitalization enhance fossil fuels resources efficiency?

This paper's primary purpose is to measure globalization's impacts on fossil fuel resource-efficient targets in 39 emerging countries from 2010 to 2020. The pooled Mean Group estimation's results confirmed that the digitalization indicators such as the digital economy index, e-government, and ICT (Information and communication technology) diffusion index increase the efficiency of fossil fuels resources in the short and long term. In addition, with a 1% increase in the share of ICT industries in the studied countries' economies, fossil fuel resources' efficiency will decrease by 0.07% and 0.13% in the short and long term, respectively. Regarding electricity consumption, the coefficients of the variable in the short-term and long-term are negative. In order to use digitalization benefits for fossil fuels efficient target, emerging economies can develop a digital green financing market, promote natural resource governance through e-government, and scale up renewable power generation.