Information And Communication Technology Growth Research Articles

Impact of Information and Communication Technologies on Energy Consumption and Economic Growth: An Empirical Assessment for China

Regarding the association between information and communication technology (ICT) and economic growth and energy consumption, particularly in developing economies, there is a great deal of controversy and a lack of empirical study. This study applies Quantile Autoregressive Distributed Lag Model (QARDL) approach to empirically probe into the effect of ICT on energy consumption and economic growth in China. Two corresponding models for energy consumption and economic growth are formulated and the data of all of the variables spanning over 1995-2021 period is taken from different secondary sources. The findings of the study reveal significant and positive impact of ICT on economic growth at all quantiles in the short and long run. Similarly ICT has significant and positive impact on energy consumption also at all quantiles. The Quantile Granger Causality test provides evidence for bidirectional causality between ICT and economic growth and ICT and energy consumption. Wald test proved the presence of and symmetric and linear association between ICT and economic growth and ICT and energy consumption at quantiles in the long and short run both. In the light of these findings, the study recommends the Chinese government and investors to have more investment in energy efficient ICT products that consume less energy and help increase in economic growth in China.

The role of digitalization, infrastructure, and economic stability in tourism growth: A pathway towards smart tourism destinations

AbstractThis study shows the impact of information and communication technology (ICT), inflation, economic growth, foreign direct investment (FDI), infrastructural development, and financial development on the global tourism index across all income groups. We use a generalized method of moments technique, novel index of tourism, and ICT in 130 countries from 1995 to 2019. The empirical results infer an increase in tourism due to sustained growth in ICT (all panels), economic growth (all panels), FDI (all panels), financial development (all panels), and infrastructure development (all panels). This study highlights the importance of increasing 4G networking in remote areas and introducing reliable mobile applications to promote smart tourism, which involves setting up a Tourist Information Centre to guide tourists in terms of traveling, accommodation, food, shopping, parking, history of specific places, healthcare services, weather forecasting, and emergencies. The central bank could ensure price stability by using different tools of monetary and fiscal policy while encouraging FDI and ICT infrastructure in the tourism industry, especially in developing countries. Tourism is directly associated with foreign exchange earnings, which in turn increases the financial strength of an economy. Besides, prioritizing investment in infrastructure, particularly in sanitation and waste management, drinking water supply, clean fuel management, and generation of electricity, could bolster tourism. The contribution of this study employs multiple indicators in the form of a composite index (i.e., global tourism index, ICT index, and infrastructure index). In addition, we have developed a global ICT index using several related indicators.

Natural resources utilization, ICT growth, and renewable energy consumption: Pathways to sustainable development in China

Economic progress drives industrial development, leading to increased natural resource extraction. The excessive use of natural resources through practices such as cultivation, deforestation, and excavation can harm ecological quality. In line with this, the present study examines the influence of natural resources on CO2 emissions in China. The study covers 31 years, from 1990 to 2021, and employs the Nonlinear Autoregressive Distributive Lag (NARDL) methodology. The empirical findings indicate that a positive shock in natural resources reduces CO2 emissions, while a negative shock in natural resources increases CO2 emissions. Additionally, the study reveals that information and communication technology (ICT) and foreign direct investment (FD) contribute to the rise in CO2 emissions. Causality analysis further confirms these associations. Based on the empirical investigations, it is deduced that the economy should devise strategies to manage natural resources effectively. Furthermore, adopting renewable energy emerges as a crucial approach to mitigate CO2 emissions in the studied economy.

Analyzing the EKC hypothesis for technologically advanced countries: The role of ICT and renewable energy technologies

International initiatives, such as the Paris Climate Conference and the COP26 conference, have highlighted the role of technology in fighting environmental problems. However, it is uncertain whether technologies are beneficial in curbing carbon dioxide (CO2) emissions. To find an answer to this question, the study focuses on four technologically advanced countries (United Kingdom, Switzerland, Norway, Denmark), considers information and communication technologies (ICT), renewable energy technologies (RRD), and economic growth in relation to environmental degradation, and tests the validity of the environmental Kuznets curve (EKC). The study applies Fourier approaches and uses data for the period 1989–2020. In this way, the study defines that (i) ICT and RRD are cointegrated with CO2 emissions; (ii) ICT mitigates environmental degradation in the United Kingdom, Denmark, Switzerland, and Norway; (iii) RRD expenditures, however, are not effective in reducing CO2 emissions; (iv) the EKC hypothesis is also validated for the countries studied. Thus, the study highlights the need for countries to rely on further use of ICT and income growth as effective policy instruments to mitigate CO2 emissions rather than RRD.

FDI, Information and Communication Technology, and Economic Growth: Empirical Evidence from Morocco

Abstract 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.

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

With the rapid global development of information and communication technology (ICT), the relationship between ICT and carbon emissions is essential for countries to achieve sustainable development. This study uses panel data from 91 countries between 2007 and 2015 to construct a comprehensive information and communication technology index. This index has been constructed based on ICT infrastructure, institutional guarantee and government support, as well as the competitiveness of ICT goods and services. A series of robustness tests guarantee the consistency of our findings, which are consistent with the empirical findings that demonstrate an inverted U-shaped relationship between ICT and CO2 emissions. Further evidence suggests that an inverted U-shaped relationship between ICT and CO2 emissions has heterogeneous effects between Belt and Road initiative (BRI) and non-BRI countries and countries with different environmental regulations. Therefore, when creating policies to reduce CO2 emissions globally, it is important to consider the growth of ICT and the heterogeneity of countries.

Impact of ICT diffusion and financial development on economic growth in developing countries

PurposeThe present study aimed to examine the relationship between information and communication technologies (ICT) diffusion, financial development and economic growth in the panel of developing countries for 2005–2019.Design/methodology/approachThe study employed the principal component analysis (PCA) to extract the index of ICT diffusion. First-generation panel unit root tests such as Levine Lin Chu (LLC), Im Pesaran Shin (IPS), Augmented Dickey-Fuller (ADF) and Phillips and Perron (PP) were employed to check the stationarity of the variables. Pedroni and Kao co-integration techniques were used to examine the existence of the long-run relationship, and co-integration coefficients were estimated using FMOLS and dynamic ordinary least squares (DOLS). The panel Granger causality approach examined the short-run and long-run causality.FindingsThe results confirmed that ICT diffusion, financial development and trade openness accelerate growth, whereas inflation dampens economic growth. Further, the causality test showed bidirectional causality between ICT growth and financial development growth but a unidirectional causality from financial development to ICT diffusion in developing countries.Originality/valueThe study recommends synchronizing public and private sector investment for a synergistic effect on ICT infrastructure and adequate investment in the financial sector to increase the growth rate in developing countries. Economic policies should be adopted toward incentives and subsidies to ensure affordable ICT services for disadvantaged communities. Also, training programs focussing on enhancing digital literacy to enable all segments of the population to use digital platforms for financial services are recommended.

Impact of Financial Inclusion, Globalization, Renewable Energy, ICT, and Economic Growth on CO2 Emission in OBOR Countries

This study examines the short-term and long-term effects of various important determinants such as financial inclusion (FI), information and communication technology (ICT), renewable energy (RE), globalization (GOB), and economic growth (EG) on CO2 emissions in the top 10 emitter countries in the OBOR region based on the collected data for the years 2004 to 2019. This study employed the CS-ARDL technique. Findings demonstrate a strong relationship between FI, ICT, and CO2 emissions in both the long-term and short-term. Renewable sources of energy have been found to have a CO2 emission reduction effect, both in the long and short term. In the long run, there is a negative connection between globalization and CO2 emissions; however, in the short run, this connection is inconsequential, while economic growth (EG) has a positive association with CO2 emission. The development of ICT infrastructure carries the potential to directly mitigate the detrimental effects of CO2 emissions while also playing an important role in raising people’s environmental consciousness. OBOR countries should welcome and encourage clean and green foreign investment that provides technical skills, environmental technology development, and carbon-free processes.

The Impact of ICT on Financial Sector Development Under Structural Break: An Empirical Analysis of the Turkish Economy

This study is to examine the relationship between information and communication technology (ICT) and financial development in the Turkish economy during the period of 1986–2018. By empirical literature, economic growth, technological innovation, and financial globalization are added to the financial development model as explanatory variables. The autoregressive distributed lag (ARDL) model and Hatemi-J cointegration test with two structural breaks are applied to examine the presence of cointegration between the variables. Dynamic ordinary least squares (DOLS), fully modified least squares (FMOLS), and canonical cointegrating regression (CCR) estimation techniques are applied for long-term estimates. The vector error correction model (VECM) Granger causality approach is used for causality analysis. Our empirical results show that under the structural break, ICT, economic growth, technological innovation, and financial globalization are cointegrated with financial development. In the presence of a structural break, ICT and technological innovation negatively affect financial development, while economic growth and financial globalization have a positive impact on financial development. The causality analysis determines that there is a one-way causality relationship running from ICT and economic growth to financial development. In addition, technological innovation and financial globalization lead to long-term financial development. Empirical findings have important policy recommendations for financial development in the Turkish economy.

Role of ICT innovations in Business Efficiency and Effectiveness: An Empirical Investigation

Presently, information and communication technology (ICT) is an essential component of management of the company. It is unavoidable for the proper functioning of any firm, regardless of extent or expertise, across the globe. Because of the fast growth of ICT and its widespread application in all aspects businesses it has an impact on people's lives and enterprises. Businesses are now regulating their operations by utilizing ICT assistance, which allows them to do activities more efficiently and precisely than ever. Services or products that give profits are mainly developed by the businesses. As far as Information Technology is concerned it is used to develop, produce, process, acquire, dissimilate and transfer of the information. Information technology is vital to the corporate sector as a managed service for optimizing information processing in order to profitably provide goods and services. In today's technology era, ICT is not simply a field of study; it is a type of creativity and a novel business model that is significant for an organization's management performance. It is critical that senior executives successfully integrate the concept of information and communication technology. Whether the company is small, medium, or huge, information technology is critical to its success.

THE IMPACT OF ICT CAPITAL GROWTH ON ECONOMIC GROWTH: THE CASE OF EGYPT

Capital investments in information and communication technology (ICT) have been a major contributor to the growth of several developed countries. In an attempt to boost their economies, some emerging and developing countries have been following a similar path, in which they heavily invest in the sector of ICT. However, due to other factors, ICT capital growth may not always produce the desired economic outcome. The purpose of this study is to estimate the impact of capital growth in ICT on economic growth in one developing country, Egypt, which has been heavily investing in the sector of ICT. The study analyses time series data covering the period from 1999 to 2019 using an error correction model. The findings demonstrate that there is no long-term positive association between ICT capital growth and economic growth in Egypt. While the development of ICT provides the potential for Egypt to achieve sustained economic growth, the significance and size of these impacts are currently negligible. The study concludes that in order to benefit from capital investments in ICT, policymakers should enact high-quality investment policies and improve the overall quality of the surrounding environment, such as the regulatory and institutional environments, in addition to controlling inflation and government consumption

Information and communication technologies development and the resource curse

Information and communication technologies (ICTs) influence economic growth, yet, innovation in natural resource development and energy demands is seldom considered. Will the development of ICTs aid in alleviating this natural resource curse? An analysis of time-series data from 30 Chinese provinces confirms this effect, and this finding is especially robust. In particular, some Chinese regions are affected by an abundance of natural resources. Computing, telephone, cellular connections, and incentives for technological collaboration result in greater energy demands and, thus, greater CO2 emissions. In short, ICT growth somewhat alleviates the resource curse. This effect is heterogeneous in terms of the level of regional financial development and the presence of a resource curse in the location. Policymakers seeking to develop long-term, nationwide e-sustainable strategies must then lower natural resource prices and pollution abatement costs through technologically driven natural resource expansion.

ICT and Economic Resilience during COVID-19: Cross-Country Analysis

The central objective of this paper is to empirically assess whether countries with better information and communication technology (ICT) infrastructure suffered less GDP growth deceleration during COVID-19. The scope of this paper is to apply linear estimation to a sample of 117 economies, including 86 emerging market and developing economies and 31 advanced economies, to analyze the relationship between ICT and GDP growth deceleration during the pandemic period. Controlling for other variables that can also influence economic performance, we find empirical support for a positive impact of ICT. For a given COVID-19 infection rate, we find that economies with better internet access showed greater resilience, defined as less in terms of economic growth. The obvious policy implication is that governments should invest more in ICT infrastructure to strengthen the resilience of their economies in the face of major shocks.

ICT, technological diffusion and economic growth in Chinese cities

This study uses a rich city-level dataset to analyse the relationship between information and communication technology (ICT) and economic growth in Chinese cities during 2001–2016. It is shown that ICT not only improves the aggregate efficiency of a city but also helps the city absorb technological diffusion from the frontier city. In addition, distance plays little role in technological diffusion process associated with ICT. Cities geographically farther away from or closer to the frontier city can equally benefit from technological diffusion as long as they have the same level of ICT development.

Poverty, ICT and Economic Growth in SADC Region: A Panel Cointegration Evaluation

Although there is a wealth of evidence on the relationship between economic growth and poverty or poverty and information and communication technology (ICT), there are few studies on the interaction between the three factors. The triangle relationship between poverty, information and communication technology, and economic growth in SADC were investigated in this study from 2005 to 2019. The research looked at how ICT and economic growth impact poverty in SADC countries, using the instruments of the Mean-Group FMOLS, Mean-Group DOLS, and Robustness Mean-Group Estimators in achieving its major objective. The principal component analysis was employed in generating a single index value for ICT and the data were subjected to relevant econometric tests to achieve robust results. Findings showed that all the variables exhibited poverty-reducing effects in SADC except inflation. Results confirm the existence of the “leapfrogging” hypothesis for the region. It is necessary to strengthen existing bilateral links among member nations of the area to maintain the benefits of ICT’s poverty-reducing impacts, economic growth, financial development, and trade openness. As applicable in other advanced and some emerging economies, the digital competence of the region needs to be synchronized for effective ICT service delivery.

PRACTICALITY OF STEM INTEGRATED ELECTRONIC PHYSICS TEACHING MATERIALS ON ELASTICITY MATERIALS TO IMPROVE 21st CENTURY SKILLS OF STUDENTS

The breakneck internet access speed evidences the progress of society in the 21st century. Internet access speed is a form of community progress 5.0 in obtaining quality information. 21st-century skills have been born along with the development of information and communication technology (ICT). The rapid growth of ICT raises concerns about the human workforce that can be replaced by robots. The first actual condition is that 21st-century skills such as problem-solving, creative thinking, collaboration, and communication, are still low. The second exact condition is that the teaching materials used have not been integrated with STEM, with a value of 48%. The purpose of this study was to determine the practicality of developing STEM integrated electronics physics teaching materials to improve students' 21st-century skills. This study uses the type of research R&D (Research & Development). While the model used is the Plomp model. Based on the research results that have been done, it can be concluded that the results of the practicality of teaching materials in the one-to-one, small group, and field test trials are 80, 84, and 83, respectively. This can be interpreted that the electronic teaching materials developed are practical and can be used when learning physics.

The ICT, financial development, energy consumption and economic growth nexus in MENA countries: dynamic panel CS-ARDL evidence

ABSTRACT This paper analyses the nexus between renewable and non-renewable energy consumption, financial development, Information and Communication Technology (ICT) diffusion and economic growth, in MENA countries, over the period 1980–2018. We use the novel Cross-Section augmented Autoregressive Distributed Lag (CS-ARDL) estimation technique which accounts for cross-sectional dependence and cross-country heterogeneity issues. We find a positive impact of renewable and non-renewable energy on economic growth, but a negative effect of financial development on economic growth. We also find a positive and statistically significant influence of ICT on Gross Domestic Product (GDP). Renewable energy and ICT diffusion can be considered important determinants of improved economic activity, job creation and better environmental quality. Pairwise Dumitrescu-Hurlin panel causality tests were used to examine the causal relations among the variables. The findings of this study have considerable policy implications for the selected countries.

ICT and Economic Growth in EU: A macro Level Comparison of Estimated ICT Output Elasticities

ABSTRACT This paper examines the impact of information and communication technology (ICT) investments on the economic growth of EU-27. Our work responds to the lack of sufficient number of econometric estimation studies at country level coupled with a large variation in ICT elasticity results. We estimate an augmented Cobb Douglas production function using panel data techniques based on a sample of 27 countries for the period 1996–2016. The results suggest a significant effect of ICT investments on GDP growth. Further comparisons are drawn with studies using similar databases and sample periods. The results also reveal that the estimated returns to ICT are three times higher than the ICT factor share. Having excluded several sources of potential excess returns, we conclude that omitted variables and possible complementarities between ICT and organizational capital could serve as a plausible explanation.

Export Enhancing Effects of Information and Communication Technologies: Evidence from Bangladesh

The study examines the impact of information and communications technology (ICT) on bilateral export flows from Bangladesh to its trading partners based on an augmented panel gravity model. It includes 108 importers of Bangladeshi goods. The sample period extends from 2000 to 2018. Primarily, we employ Pooled Ordinary Least Square (POLS) model, and we utilize Poisson Pseudo Maximum Likelihood (PPML) as an alternative estimation technique to check robustness. The findings from the OLS model indicate that ICT has positive and significant effects on Bangladesh’s bilateral export. The results from PPML also support the findings from the OLS model. Therefore, the results come out to be robust. These findings imply that by reducing trade-related costs e. g., shipping costs, market access costs, and communication and information costs, ICT growth in Bangladesh as well as in its trading partner countries enhances trade flows and therefore has a trade-boosting effect.

ICT and economic growth in Sub-Saharan Africa: Transmission channels and effects

Despite significant progress in the empirical analysis of the impact of information and communication technology (ICT) on economic growth, previous studies have not empirically examined the mechanisms by which ICT hinders or expands economic growth. The specific aim of the present study was to identify the transmission channels through which ICT contributes to economic growth. The examined channels included; openness, FDI inflows, education, domestic investment, political institution, and inflation. The study employed the panel-corrected standard errors (PCSE) and system two step system GMM techniques on a sample of 44 countries in Sub-Saharan Africa (SSA) over the period 2004–2020. Using an ICT composite index, the causal mediation analysis identified that ICT contributed directly to growth, as proposed by the growth theories. Furthermore, the same analysis identified; domestic investment, openness, and education as crucial variables through which ICT penetration indirectly promoted per capita growth in the SSA region. The robustness of this result was verified using a variety of tools. The present findings suggested that the current efforts to expand ICTs in Sub-Saharan Africa should be continued since this sector has a considerable indirect impact on promoting economic growth.