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Exploring the role of information communication technology, trade, and foreign direct investment to promote sustainable economic growth: Evidence from Belt and Road Initiative economies

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  • Kashif Iqbal
  • Muddassar Sarfraz
  • Khurshid

Abstract

Information communication technology (ICT) contributes to global social, political, and sustainable economic growth. In particular, ICT, foreign direct investment (FDI), and trade in green economic growth are imperative factor that contributes to the country's development. In this regard, this paper explores the relationship between ICT, FDI, and trade in green economic growth for a group of 53 Belt and Road Initiative (BRI) economies between 1990 and 2020. For empirical estimation, this study employs the generalized method of moment. Significantly, the results reveal that using ICT stimulates green economic growth in BRI countries by supporting the endogenous economic growth theory. The study shows claims that the interaction term of ICT with trade and ICT with FDI expedites the economic growth rate. Also, it reveals a positive and significant relationship between trade (exports and imports) and economic growth in BRI economies. It shows the positive and significant influence of ICT on FDI and its impact on economic growth in the long run. Further, it supports the positive effect of ICT on FDI inflows in the BRI economies. It concludes that more advancement in ICT can stimulate trade. Therefore, the BRI economies should further improve ICT as a profound tool that accelerates FDI inflows and stimulate trade for green economic growth.

Suggested Citation

  • Kashif Iqbal & Muddassar Sarfraz & Khurshid, 2023. "Exploring the role of information communication technology, trade, and foreign direct investment to promote sustainable economic growth: Evidence from Belt and Road Initiative economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1526-1535, June.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:3:p:1526-1535
    DOI: 10.1002/sd.2464
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