Information and Communication Technology (ICT) and Singapore's Economic Growth

“Information and Communication Technology (ICT) and Singapore’s Economic Growth,” Journal of Information Economics and Policy, 25(4), December 2013 284–300

Lee Kuan Yew School of Public Policy Research Paper No. 14-08

40 Pages Posted: 14 May 2014

See all articles by Vu Ming M. Khuong

Vu Ming M. Khuong

National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy

Date Written: May 06, 2014

Abstract

Singapore’s remarkable success in economic development has been strongly associated with the country’s vigorous efforts to embrace the Information and Communication Technology ICT revolution to promote economic growth. This study provides a comprehensive investigation of the contributions of ICT to Singapore’s economic growth during the 1990-2008 period. It documents three key findings. First, there is a strong positive association between the intensity of ICT use and value-added and labor productivity growth at the sector level. Second, ICT investment contributed approximately 1 percentage point to Singapore’s GDP during 1990-2008, and its role in driving economic growth has become increasingly important over time. Third, the contribution of the ICT manufacturing sector to Singapore’s growth was notable, but it was on the decline and faced difficult restructuring challenges. This paper also provides valuable policy lessons and strategic insights for governments in both developed and developing countries that aspire to embrace ICT to promote economic growth.

Keywords: ICT; Singapore; I-O tables; growth decomposition; productivity; ICT manufacturing

JEL Classification: O40, O47, O53

Suggested Citation

Khuong, Vu Ming M., Information and Communication Technology (ICT) and Singapore's Economic Growth (May 06, 2014). “Information and Communication Technology (ICT) and Singapore’s Economic Growth,” Journal of Information Economics and Policy, 25(4), December 2013 284–300; Lee Kuan Yew School of Public Policy Research Paper No. 14-08. Available at SSRN: https://ssrn.com/abstract=2436797

Vu Ming M. Khuong (Contact Author)

National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy ( email )

Singapore 117591
Singapore

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