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Investigating the effects of ICT infrastructure on Malaysia’s economic growth: Insights from the Solow growth model

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  • Chor Foon Tang
  • Muhamad Afiq Ikmal Rosidi

Abstract

Using annual data from 1970 to 2020, this study examines the effects of economic leadership, information and communication technology (ICT) infrastructure, and financial development on long-term economic growth in Malaysia. To accomplish this, we employ the Kapetanios multiple breaks unit root test and the Saikkonen-Lütkepohl (SL) test for cointegration with breaks. We add to the body of knowledge on this topic by exploring the direct and indirect (moderating) effects of economic leadership and financial development on the ICT-growth nexus. We discover that poor leadership impedes economic advancement in Malaysia and that the expansion of the financial sector tends to enhance the growth-improving effects of ICT. Moreover, the effects of both financial and ICT developments on growth are contingent upon Malaysia’s economic leadership. As such, Malaysia should encourage competent economic leadership, financial development, and a comprehensive ICT infrastructure network to boost its long-term economic growth.

Suggested Citation

  • Chor Foon Tang & Muhamad Afiq Ikmal Rosidi, 2025. "Investigating the effects of ICT infrastructure on Malaysia’s economic growth: Insights from the Solow growth model," Information Technology for Development, Taylor & Francis Journals, vol. 31(1), pages 124-139, January.
    • Handle: RePEc:taf:titdxx:v:31:y:2025:i:1:p:124-139
    DOI: 10.1080/02681102.2024.2338527
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