The Impact of Information and Communication Technology Investment on Economic Growth in Newly Industrialized Countries in Asia
Australian Journal of Basic and Applied Sciences, 5(9): 508-516, September 2011
9 Pages Posted: 30 Dec 2012
Date Written: January 1, 2011
In recent years, progress in Information and Communication Technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization processes. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results,regarding to different research methodology and geographical configuration of the study. In this paper, we estimate the endogenous production growth model, using panel data of the Newly Industrialized Countries (NICs) in Asia, namely Singapore, South Korea, Hong Kong and Malaysia over the period of 1990-2007. We find a strong significant positive impact of ICT investment on economic growth for these countries. This implies that if these countries seek to enhance their economic growth, they need to implement specific policies that facilitate investment in ICT.
Keywords: Economic growth, Information and Communication Technology, Newly Industrialized Countries
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