An Overview of the Romanian ICT Sector in the Context of European Emerging Markets

Abstract

Information and Communication Technology (ICT) has really meant an economic boost to new and innovative activities worldwide. It comprises a host of high-tech elements; such as IT services software, computer hardware, and telecommunications equipment as well as technical services, including provider and carrier services. The first benefits were clearly accruing to the developed regions of our world, but we witness nowadays a gradual diffusion and proliferation of this new sector into developing economies and even into the lagging markets in the developed world. Regions in our globalizing world are increasingly involved in fierce competition to exploit to the maximum extent possible the prospective economic benefits of the ICT sector. This has sometimes led to an uncritical reliance on the ICT sector as a key driver for national or regional growth. With the disappearance of the 'new economy phantom' a more realistic view has evolved aiming to provide a balanced assessment of both the potentials and the risks of this sector. Public policy has realized the importance of new technologies for economic growth, but has also recognized the need for a balanced perspective on economic growth utilizing the indigenous potential of regions in a growing world economy. This holds for both developed markets and emerging markets, e.g., in the new member states and the accession countries of the EU.

Keywords: ICT, emerging market, FDI, economic growth, valuation, e-business

JEL Classification: R11