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Macroeconomic Effects of Information and Communication Technologies in Turkey and Other OECD Member Countries

  • Burak Karagöl


    (Ministry of Development Republic of Turkey)

  • Erkan Erdil


    (Department of Economics, Middle East Technical University)

This paper investigates the effects of ICT on economic growth in Turkey and other OECD member countries. After discussing the theoretical relationships between ICT usage and economic growth, we test the positive impact of ICT revolution on economic growth econometrically. In the empirical part of the study, we perform panel data analyses by employing data sets that belong to 30 OECD member countries for 1999-2008 period as well as carrying out time series analyses for only Turkey by using data between 1980 and 2009. We find out that ICT usage and production have a positive significant effect on economic growth in OECD case. However, due to some methodological difficulties and insufficiency of critical mass regarding ICT area and complementary physical and social infrastructures in Turkey, we cannot find any significant relationship between ICT and economic growth for Turkish case.

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Paper provided by STPS - Science and Technology Policy Studies Center, Middle East Technical University in its series STPS Working Papers with number 1205.

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Length: 53 pages
Date of creation: May 2012
Date of revision: May 2012
Handle: RePEc:met:stpswp:1205
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  1. Jonathan Coppel, 2000. "E-Commerce: Impacts and Policy Challenges," OECD Economics Department Working Papers 252, OECD Publishing.
  2. John Simon & Sharon Wardrop, 2002. "Australian Use of Information Technology and its Contribution to Growth," RBA Research Discussion Papers rdp2002-02, Reserve Bank of Australia.
  3. Karl Whelan, 2000. "Computers, obsolescence, and productivity," Finance and Economics Discussion Series 2000-06, Board of Governors of the Federal Reserve System (U.S.).
  4. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
  5. Nicholas Oulton, 2001. "ICT and productivity growth in the United Kingdom," Bank of England working papers 140, Bank of England.
  6. Dale Jorgenson & Kazuyuki Motohashi, 2004. "Information Technology and the Japanese Economy," NBER Chapters, in: Enhancing Productivity (NBER-CEPR-TCER-Keio conference) National Bureau of Economic Research, Inc.
  7. Daveri, Francesco, 2002. "The New Economy in Europe, 1992-2001," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Nonneman, Walter & Vanhoudt, Patrick, 1996. "A Further Augmentation of the Solow Model and the Empirics of Economic Growth for OECD Countries," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 943-53, August.
  9. Stephen D. Oliner & Daniel E. Sichel, 2000. "The resurgence of growth in the late 1990s: is information technology the story?," Proceedings, Federal Reserve Bank of San Francisco.
  10. Marcin Piatkowski, 2003. "The Contribution of ICT Investment to Economic Growth and Labor Productivity in Poland 1995-2000," Development and Comp Systems 0308002, EconWPA.
  11. Burcu Türkcan & Erkan Erdil & Ý. Hakan Yetkiner, 2009. "Does Information and Communication Technologies Sustain Economic Growth? The Underdeveloped and Developing Countries Case," Working Papers 0901, Izmir University of Economics.
  12. Norton, Seth W, 1992. "Transaction Costs, Telecommunications, and the Microeconomics of Macroeconomic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 175-96, October.
  13. Seung-Hoon Yoo, 2003. "Does information technology contribute to economic growth in developing countries? a cross-country analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 679-682.
  14. Jalava, Jukka & Pohjola, Matti, 0. "ICT as a source of output and productivity growth in Finland," Telecommunications Policy, Elsevier, vol. 31(8-9), pages 463-472, September.
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