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Does information and communications technology affect economic growth? Empirical evidence from SAARC countries

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  • Manas Tripathi
  • Sarveshwar Kumar Inani

Abstract

This study investigates the impact of Information and Communications Technology (ICT) on economic growth (gross domestic product) for member countries of South Asian Association for Regional Cooperation (SAARC) using annual data for the period 1990–2014. The study has employed augmented Cobb–Douglas production function by incorporating ICT along with capital and labor. We have taken teledensity (number of fixed and mobile phones per 10,000 people) as the proxy of ICT. This study has included only four SAARC countries (Bangladesh, India, Sri Lanka, and Pakistan) due to data constraints. Our findings reveal a positive and statistically significant effect of ICT on economic growth using panel data techniques. However, the impact of ICT on economic growth is highest for India followed by Sri Lanka, Bangladesh, and Pakistan respectively. This study has crucial policy implications for SAARC countries as they have started giving due significance to the issues related to ICT these years.

Suggested Citation

  • Manas Tripathi & Sarveshwar Kumar Inani, 2020. "Does information and communications technology affect economic growth? Empirical evidence from SAARC countries," Information Technology for Development, Taylor & Francis Journals, vol. 26(4), pages 773-787, October.
    • Handle: RePEc:taf:titdxx:v:26:y:2020:i:4:p:773-787
    DOI: 10.1080/02681102.2020.1785827
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    Cited by:

    1. Taiwo Akinlo & James Temitope Dada, 2022. "Information technology, real sector and economic growth in sub-Saharan Africa: a cross-sectional dependence approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4241-4267, December.
    2. Parvathi Jayaprakash & R. Radhakrishna Pillai, 2022. "The Role of ICT for Sustainable Development: A Cross-Country Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 225-247, February.
    3. Antonio Rodríguez Andrés & Abraham Otero & Voxi Heinrich Amavilah, 2022. "Knowledge economy classification in African countries: A model-based clustering approach," Information Technology for Development, Taylor & Francis Journals, vol. 28(2), pages 372-396, April.
    4. 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).
    5. N.M. Odhiambo, 2022. "Information Technology, Income Inequality and Economic Growth in sub-Saharan African Countries," Working Papers AESRI-2022-14, African Economic and Social Research Institute (AESRI), revised Jan 2022.
    6. Jayanti Behera & Dukhabandhu Sahoo, 2022. "Asymmetric relationships between information and communication technology (ICT), globalization, and human development in India: evidence from non-linear ARDL analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-25, December.
    7. Odhiambo, Nicholas M., 2022. "Information technology, income inequality and economic growth in sub-Saharan African countries," Telecommunications Policy, Elsevier, vol. 46(6).
    8. Odhiambo, Nicholas M., 2022. "Information technology, income inequality and economic growth in sub-Saharan African countries," Telecommunications Policy, Elsevier, vol. 46(6).

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