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Does Information and Communication Technologies Sustain Economic Growth? The Underdeveloped and Developing Countries Case

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Author Info
Burcu Türkcan () (Department of Economics, Ege University)
Erkan Erdil () (Department of Economics, Middle East Technical University)
Ý. Hakan Yetkiner () (Department of Economics, Izmir University of Economics)

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Abstract

This paper tests the impact of ICT on economic growth for underdeveloped and developing countries by using a panel dataset for the period of 1995-2006. We first develop the theory between ICT and economic growth. We show that ICT capital has a positive effect both on long-run and transitional income per capita, if it is considered as a factor of production. Next, we estimate a panel data set with 131 underdeveloped and developing countries under the assumption that ICT is one of the determining factors of economic growth. We find that ICT has positive and significant effect on economic growth even after the use of some control variables.

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Publisher Info
Paper provided by Izmir University of Economics in its series Working Papers with number 0901.

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Length: 14 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:izm:wpaper:0901

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Web page: http://eco.ieu.edu.tr
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Related research
Keywords: ICT; economic growth; Panel Data; GMM; human capital; developing countries; underdeveloped countries;

Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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This page was last updated on 2009-11-23.

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