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The Dynamic Relation between Technology Adoption, Technology Innovation, Human Capital and Economy: Comparison of Lower-Middle-Income Countries

Author

Listed:
  • Shafaq Salam

    (Beijing University of Posts and Telecommunications - School of Economics and Management, Beijing, People's Republic of China)

  • Muhammad Hafeez

    () (Beijing University of Posts and Telecommunications - School of Economics and Management, Beijing, People's Republic of China)

  • Muhammad Tariq Mahmood

    (Federal Urdu University of Arts & Technology - Department of Commerce, Islamabad, Pakistan)

  • Kashif Iqbal

    (Beijing University of Posts and Telecommunications - School of Economics and Management, Beijing, People's Republic of China)

  • Kashifa Akbar

    (Beijing University of Posts and Telecommunications - School of Economics and Management, Beijing, People's Republic of China)

Abstract

The advent of technologies has stimulated the economic growth of western countries, however, some Asian and African countries are among the Lower Middle Income Countries due to lack of technology adoption and digitally skilled human capital. The use of technologies produces digital competent human capital stock that accelerates economic growth. The prime goal of this article is to explore dynamics of technology adoption, technology innovation, human capital and skill development for Lower Middle Income Countries region over the period 2000-2016 by Generalised Method of Moments and cross sectional dependence. New technology adoption, technology innovation and human capital & skill development indices are formulated. The empirical findings indicate that human capital development & skill and investment have positive linkage with Lower Middle Income Countries economic growth while technology adoption and innovation have different linkage across the Lower Middle Income Countries regions. The panel error correction method was applied to estimate short run dynamics and convergence rate. The fully modified ordinary least square was applied to authenticate whether the long run estimates are consistent and valid for policy implications. The findings propose policy implications for advance technology adoption and innovation with the focus on human capital development & skill and investment in Lower Middle Income Countries region.

Suggested Citation

  • Shafaq Salam & Muhammad Hafeez & Muhammad Tariq Mahmood & Kashif Iqbal & Kashifa Akbar, 2019. "The Dynamic Relation between Technology Adoption, Technology Innovation, Human Capital and Economy: Comparison of Lower-Middle-Income Countries," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(1-B), pages 146-161.
  • Handle: RePEc:zna:indecs:v:17:y:2019:i:1-b:p:146-161
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    References listed on IDEAS

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    More about this item

    Keywords

    technology innovation; technology adoption; human capital; economic growth;

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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