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The Impact of Countries’ Participation in the ICT Services Market on Economic Growth, CPI, and Exchange Rates

Author

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  • Oliinyk Andrii

    (1 State University of Trade and Economics, Kyiv, Ukraine)

Abstract

Finding a way of achieving economic growth in the crisis period due to the COVID-19 pandemic, Russia’s invasion of Ukraine, and probable global regression aggravates the need for the implementation of managerial solutions of entering or intensifying participation in the perspective markets. The ICT industry has been a locomotive of economic development for the last decade for participating economies. The basic idea of the paper is based on the need to analyze the impact of countries’ participation in the ICT services market on their economic growth, consumer price indices (CPI), and exchange rates. The purpose was achieved by performing an analysis of the state and dynamics of the main indicators of the world ICT services market. The results show that the volume of ICT services exported and imported is growing. Moreover, we aimed to provide empirical evidence on the ICT services market’s impact on the economic parameters of the countries. We proposed a statistical model of Pearson’s r regression, based on the data of GDP values, CPI, and exchange rates of the 30 largest markets accounting for more than 90% of the ICT world market. The core results demonstrate stronger ICT services export and import correlation with GDP for economies with lower GDP per capita. The model shows a high success rate depending on variables. Based on the results obtained during modelling, propositions, and recommendations for countries with different socio-economic development levels were given.

Suggested Citation

  • Oliinyk Andrii, 2023. "The Impact of Countries’ Participation in the ICT Services Market on Economic Growth, CPI, and Exchange Rates," Economics, Sciendo, vol. 11(1), pages 269-287, June.
    • Handle: RePEc:vrs:econom:v:11:y:2023:i:1:p:269-287:n:6
    DOI: 10.2478/eoik-2023-0009
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    References listed on IDEAS

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    1. Rami Hodrab & Mansoor Maitah & Smutka Lubo, 2016. "The Effect of Information and Communication Technology on Economic Growth: Arab World Case," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 765-775.
    2. Jungsuk Kim & Gemma Estrada & Yothin Jinjarak & Donghyun Park & Shu Tian, 2022. "ICT and Economic Resilience during COVID-19: Cross-Country Analysis," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
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    More about this item

    Keywords

    ICT services market; economic growth; GDP; CPI; exchange rate;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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