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

See all articles by Maryam Farhadi

Maryam Farhadi

National University of Malaysia (UKM)

Rahmah Ismail

University of Kebangsaan

Date Written: January 1, 2011

Abstract

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

Suggested Citation

Farhadi, Maryam and Ismail, Rahmah, The Impact of Information and Communication Technology Investment on Economic Growth in Newly Industrialized Countries in Asia (January 1, 2011). Australian Journal of Basic and Applied Sciences, 5(9): 508-516, September 2011, Available at SSRN: https://ssrn.com/abstract=2194854

Maryam Farhadi (Contact Author)

National University of Malaysia (UKM) ( email )

Bandar Baru Bangi, Selangor 43000
Malaysia

Rahmah Ismail

University of Kebangsaan ( email )

Bangi, Selangor 43600
Malaysia

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