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Information and communications technology use and income growth: evidence of the multiplier effect in very small island states

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  • Sajda Qureshi
  • Lotfollah Najjar

Abstract

Very small island states face unique challenges, such as volatile economies, increasing vulnerability to natural disasters, particularly with raising seas, increases their dependence on the world economy. Despite their growing use of ICTs, the results are mixed in terms of the effect of growing ICT usage on income growth. This paper investigates how growth in ICT usage may enable growth in per capita Gross Domestic Product (GDP) in very small island states by analyzing the effects of average ICT usage on GDP growth based on the most recent data available from the World Bank and from the International Telecommunications Union (ITU). Following an analysis of data over four years of 32 very small island states, this paper identifies an ICT multiplier effect that may explain and predict the relationship between average ICT usage and GDP growth. By showing how the ICT multiplier effects may be connected to GDP growth, this paper adds to what we know about the relationship between these two indicators in very small island states. This has implications for how government interventions can enable ICT capacity to bring about GDP growth.

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  • Sajda Qureshi & Lotfollah Najjar, 2017. "Information and communications technology use and income growth: evidence of the multiplier effect in very small island states," Information Technology for Development, Taylor & Francis Journals, vol. 23(2), pages 212-234, April.
    • Handle: RePEc:taf:titdxx:v:23:y:2017:i:2:p:212-234
    DOI: 10.1080/02681102.2016.1173634
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    3. Danish, & Khan, Salahuddin & Haneklaus, Nils, 2023. "Sustainable economic development across globe: The dynamics between technology, digital trade and economic performance," Technology in Society, Elsevier, vol. 72(C).
    4. Pal, Shreya & Mahalik, Mantu Kumar & Zhao, Qiuyun & Liu, Fan & Soliman, Alaa M., 2024. "Boosting productive capacity in OECD countries: Unveiling the roles of geopolitical risk and globalization," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    5. Weiming Li & Zhaoyang Cai & Shixiong Cao, 2021. "What has caused regional income inequality in China? Effects of 10 socioeconomic factors on per capita income," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13403-13417, September.
    6. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    7. Kamal Abubker Abrahim Sleiman & Wang Jin & Lan Juanli & Hong Zhen Lei & Jingyi Cheng & Yuanxin Ouyang & Wenge Rong, 2022. "The Factors of Continuance Intention to Use Mobile Payments in Sudan," SAGE Open, , vol. 12(3), pages 21582440221, August.
    8. Lin, Shu & Razzaq, Asif & Yi, Kefu, 2023. "Heterogenous influence of productive capacities pillars and natural resources on ecological sustainability in developing Belt and Road host countries," Resources Policy, Elsevier, vol. 85(PA).
    9. Oluc, Ihsan & Ben Jebli, Mehdi & Can, Muhlis & Guzel, Ihsan & Brusselaers, Jan, 2022. "The Productive Capacity And Environment: Evidence From OECD Countries," MPRA Paper 112590, University Library of Munich, Germany.
    10. Biswajit Patra & Narayan Sethi, 2024. "Does digital payment induce economic growth in emerging economies? The mediating role of institutional quality, consumption expenditure, and bank credit," Information Technology for Development, Taylor & Francis Journals, vol. 30(1), pages 57-75, January.
    11. Di Wang & Jianing Sun & Renhao Yang & Kangchuan Su & Qingyuan Yang, 2024. "ICTs and economic performance nexus: meta-analysis evidence from country-specific data," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
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    13. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 21st century: Making the evidence stronger," Telecommunications Policy, Elsevier, vol. 44(2).

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