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Causal relationship between internet use and economic development for selected Central Asian economies

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  • Fuat SEKMEN

    (Kyrgyzstan-Turkey Manas University, Bishkek, Kyrgzstan Sakarya University, Sakarya, Turkey)

  • Hasmet GOKIRMAK

    (Istanbul Sabahattin Zaim University, Istanbul, Turkey)

Abstract

The aim of this study is to examine the effects of information and communications technology (ICT) on economic development of several Central Asian countries. Dumitrescu and Hurlin (DH) panel causality test has been used for the relationship between ICT and economic development. The DH test results indicate that a unidirectional causality exists from GDP per capital to Inter-net use. These results suggest that an increase in GDP per capita can stimulate internet use. In addition, the cross-sectional dependence is examined using LM test of Breusch and Pagan and CD-LM and CD test of Pesaran. The results suggest that the null-hypothesis, no crosssectional dependence exists among countries, is rejected for all the tests, suggesting an economic shock in a one country may have spillover effects on other countries.

Suggested Citation

  • Fuat SEKMEN & Hasmet GOKIRMAK, 2018. "Causal relationship between internet use and economic development for selected Central Asian economies," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(3(616), A), pages 145-152, Autumn.
    • Handle: RePEc:agr:journl:v:3(616):y:2018:i:3(616):p:145-152
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    References listed on IDEAS

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    4. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    5. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    6. Donna L. Hoffman, 2000. "The Revolution Will Not Be Televised: Introduction to the Special Issue on Marketing Science and the Internet," Marketing Science, INFORMS, vol. 19(1), pages 1-3.
    7. Aurore J. Kamssu & Jeffrey S. Siekpe & James A. Ellzy, 2004. "Shortcomings to globalization: using internet technology and electronic commerce in developing countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 38(1), pages 151-169, September.
    8. Breitung, Jorg & Candelon, Bertrand, 2006. "Testing for short- and long-run causality: A frequency-domain approach," Journal of Econometrics, Elsevier, vol. 132(2), pages 363-378, June.
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    Cited by:

    1. Owusu-Agyei, Samuel & Okafor, Godwin & Chijoke-Mgbame, Aruoriwo Marian & Ohalehi, Paschal & Hasan, Fakhrul, 2020. "Internet adoption and financial development in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Doyar, Bayram Veli & Rzali, Shamsi & Dikkaya, Mehmet, 2023. "Development of the ICT sector and the determinants of Internet use in the Southern Caucasus," Telecommunications Policy, Elsevier, vol. 47(1).

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