Does Information and Communication Technology Sustain Economic Growth? The Underdeveloped and Developing Countries Case
AbstractThis 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 of the relationship 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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Bibliographic InfoPaper provided by STPS - Science and Technology Policy Studies Center, Middle East Technical University in its series STPS Working Papers with number 0903.
Length: 15 pages
Date of creation: Nov 2009
Date of revision: Nov 2009
ICT; economic growth; panel data; GMM;
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