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How does China’s information and communications technology infrastructure investment promote economic growth?

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  • Kerry Liu

Abstract

Purpose - This study aims to analyse the effects of China’s information and communications technology (ICT) infrastructure investment on economic growth. Design/methodology/approach - Using a panel data set of China’s 30 regions during 2010–2015, this study uses the generalized method of moments (GMM) methods. Findings - This study finds that compared with “old-type” infrastructure investment such as transport infrastructure and utility infrastructure, there is a time lag but greater effect from ICT infrastructure investment on growth and this relation is non-linear. Also, the human capital factor plays an enhancing role. Originality/value - This study is the first of its kind that examines the relationship between ICT infrastructure investment and growth in China.

Suggested Citation

  • Kerry Liu, 2021. "How does China’s information and communications technology infrastructure investment promote economic growth?," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 14(2), pages 268-280, May.
    • Handle: RePEc:eme:igdrpp:igdr-09-2020-0142
    DOI: 10.1108/IGDR-09-2020-0142
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    More about this item

    Keywords

    Growth and development strategies; Regional development; Infrastructure; Infrastructure investment; Information and communications technology (ICT); Human capital; Made in China 2025; Supply-side reform; O18; O23; O38; O53;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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