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Does Information and Communication Technology Sustain Economic Growth? The Underdeveloped and Developing Countries Case

Author

Listed:
  • Erkan Erdil

    (Department of Economics, Middle East Technical University)

  • Burcu Turkcan

    (Department of Economics, Ege University)

  • I. Hakan Yetkiner

    (Department of Economics, Izmir University of Economics)

Abstract

This paper tests the impact of ICT on economic growth for underdeveloped and developing countries by using a panel dataset for the period of 1995-2006. We first develop the theory of the relationship between ICT and economic growth. We show that ICT-capital has a positive effect both on long-run and transitional income per capita, if it is considered as a factor of production. Next, we estimate a panel data set with 131 underdeveloped and developing countries under the assumption that ICT is one of the determining factors of economic growth. We find that ICT has positive and significant effect on economic growth even after the use of some control variables.

Suggested Citation

  • Erkan Erdil & Burcu Turkcan & I. Hakan Yetkiner, 2009. "Does Information and Communication Technology Sustain Economic Growth? The Underdeveloped and Developing Countries Case," STPS Working Papers 0903, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Nov 2009.
    • Handle: RePEc:met:stpswp:0903
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    References listed on IDEAS

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    2. Chang Woon Nam & Sumin Nam & Peter Steinhoff, 2017. "Modi's 'Make in India' Industrial Reform Policy and East Asian Flying-Geese Paradigm," CESifo Working Paper Series 6431, CESifo.
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    Keywords

    ICT; economic growth; panel data; GMM;
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