637
Views
4
CrossRef citations to date
0
Altmetric
ARTICLES

Investigating the direct and indirect effects of Information and Communication Technology on economic growth in the emerging economies: role of financial development, foreign direct investment, innovation, and institutional quality

ORCID Icon, ORCID Icon & ORCID Icon

References

  • Adam, I. B. (2020). ICT development, e-government development, and economic development: Does institutional quality matter? Information Technologies & International Development, 16, 1–19.
  • Addison, T., & Heshmati, A. (2003). The new global determinants of FDI flows to developing countries: The impacts of ICT and democratisation. (WIDER Discussion, Paper 45). https://www.wider.unu.edu/sites/default/files/dp2003-045.pdf
  • Adeleye, B. N., Adedoyin, F., & Nathaniel, S. (2021). The criticality of ICT–trade nexus on economic and inclusive growth. Information Technology for Development, 27(2), 293–313. https://doi.org/10.1080/02681102.2020.1840323
  • Adeleye, B. N., & Eboagu, C. (2019). Evaluation of ICT development and economic growth in Africa. NETNOMICS: Economic Research and Electronic Networking, 20(1), 31–53. https://doi.org/10.1007/s11066-019-09131-6
  • Alimi, A. S., & Adediran, I. A. (2020). ICT diffusion and the finance–growth nexus: A panel analysis on ECOWAS countries. Future Business Journal, 6(1), 1–10. https://doi.org/10.1186/s43093-020-00024-x
  • Alshubiri, F., Jamil, S. A., & Elheddad, M. (2019). The impact of ICT on financial development: Empirical evidence from the Gulf Cooperation Council countries. International Journal of Engineering Business Management, 11, 1–14. https://doi.org/10.1177/1847979019870670.
  • Amoah, A., Kwablah, E., Korle, K., & Offei, D. (2020). Renewable energy consumption in Africa: The role of economic well-being and economic freedom. Energy, Sustainability and Society, 10(1), 1–17. https://doi.org/10.1186/s13705-020-00264-3
  • Andrianaivo, M., & Kpodar, K. (2012). Mobile phones, financial inclusion, and growth. Review of Economics and Institutions, 3(2), 1–30. https://doi.org/10.5202/rei.v3i2.75
  • Appiah-Otoo, I., & Song, N. (2021). The impact of ICT on economic growth-comparing rich and poor countries. Telecommunications Policy, 45(2), 102082. https://doi.org/10.1016/j.telpol.2020.102082
  • Asongu, S. A., & Nwachukwu, J. C. (2018). Openness, ICT, and entrepreneurship in sub-Saharan Africa. Information Technology & People, 31(1), 278–303. https://doi.org/10.1108/ITP-02-2017-0033
  • Asongu, S. A., & Odhiambo, N. M. (2020). Foreign direct investment, information technology and economic growth dynamics in sub-Saharan Africa. Telecommunications Policy, 44(1), 101838. https://doi.org/10.1016/j.telpol.2019.101838
  • Avgerou, C. (1998). How can IT enable economic growth in developing countries? Information Technology for Development, 8, 15–28. https://doi.org/10.1080/02681102.1998.9525288
  • Bankole, F. O., Osei-Bryson, K., & Brown, I. (2013). The impact of information and communications technology infrastructure and complementary factors on intra-African trade. Information Technology for Development, 21(1), 12–28. https://doi.org/10.1080/02681102.2013.832128
  • Bekhet, H. A., & Othman, N. S. (2011). Causality analysis among electricity consumption, consumer expenditure, gross domestic product (GDP) and foreign direct investment (FDI): case study of Malaysia. Journal of Economics and International Finance, 3(4), 228–235.
  • Bertot, J. C., Jaeger, P. T., & Grimes, J. M. (2010). Using ICTs to create a culture of transparency: E-government and social media as openness and anti-corruption tools for societies. Government Information Quarterly, 27(3), 264–271. https://doi.org/10.1016/j.giq.2010.03.001
  • Bhattacharya, M., Churchill, S. A., & Paramati, S. R. (2017). The dynamic impact of renewable energy and institutions on economic output and CO2 emission across regions. Renewable Energy. https://doi.org/10.1016/j.renene.2017.03.102
  • Bhujabal, P., Sethi, N., & Padhan, P. C. (2021). ICT, foreign direct investment and environmental pollution in major Asia Pacific countries. Environmental Science and Pollution Research, 28(31), 42649–42669. https://doi.org/10.1007/s11356-021-13619-w
  • Birudavolu, S., & Nag, B. (2019). Business innovation and ICT strategies. Palgrave Macmillan.
  • Bonina, C. M., & Cordella, A. (2010). Public sector innovation and ICT: Beyond the private sector rationale. Haettu, 13, 2011.
  • Breusch, T. S., & Pagan, A. R. (1979). A simple test for heteroscedasticity and random coefficient variation. Econometrica: Journal of the Econometric Society, 47(5), 1287–1294. https://doi.org/10.2307/1911963
  • Bruijn, H., & Janssen, M. (2017). Building cybersecurity awareness: The need for evidence-based framing strategies. Government Information Quarterly, 34(1), 1–7. https://doi.org/10.1016/j.giq.2017.02.007
  • Chatterjee, A. (2020). Financial inclusion, information and communication technology diffusion, and economic growth: A panel data analysis. Information Technology for Development, 26(3), 607–635. https://doi.org/10.1080/02681102.2020.1734770
  • Cheng, C. Y., Chien, M. S., & Lee, C. C. (2021). ICT diffusion, financial development, and economic growth: An international cross-country analysis. Economic Modelling, 94, 662–671. https://doi.org/10.1016/j.econmod.2020.02.008
  • Choi, C., & Yi, M. H. (2017). The internet, R&D expenditure, and economic growth. Applied Economics Letters, 25(4), 264–267. https://doi.org/10.1080/13504851.2017.1316819
  • Das, A., Chowdhury, M., & Seaborn, S. (2018). ICT diffusion, financial development and economic growth: New evidence from Low and lower middle-income countries. Journal of the Knowledge Economy, 9(3), 928–947. https://doi.org/10.1007/s13132-016-0383-7
  • Datta, A., & Agarwal, S. (2004). Telecommunications and economic growth: A panel data approach. Applied Economics, 36(15), 1649–1654. https://doi.org/10.1080/0003684042000218552
  • Duttagupta, R., & Pazarbasioglu, C. (2021). Miles to go: Emerging markets must balance overcoming the pandemic, returning to more normal policies, and rebuilding their economies. International Monetary Fund.
  • Elkomy, S., Ingham, H., & Read, R. (2016). Economic and political determinants of the effects of FDI on growth in transition and developing countries. Thunderbird International Business Review, 58(4), 347–362. https://doi.org/10.1002/tie.21785
  • Entele, B. R. (2021). Impact of institutions and ICT services in avoiding resource curse: Lessons from the successful economies. Heliyon, e05961. https://doi.org/10.1016/j.heliyon.2021.e05961
  • Gheraia, Z., Abid, M., Sekrafi, H., & Abdelli, H. (2021). The moderating role of ICT diffusion between financial development and economic growth: Bootstrap ARDL approach in Saudi Arabia. Information Technology for Development, 28(4), 816–836. https://doi.org/10.1080/02681102.2021.1998759
  • Gholami, R., Tom Lee, S. Y., & Heshmati, A. (2006). The causal relationship between information and communication technology and foreign direct investment. The World Economy, 29(1), 43–62. https://doi.org/10.1111/j.1467-9701.2006.00757.x
  • Gunasekaran, A., Subramanian, N., & Papadopoulos, T. (2017). Information technology for competitive advantage within logistics and supply chains: A review. Transportation Research Part E: Logistics and Transportation Review, 99, 14–33. https://doi.org/10.1016/j.tre.2016.12.008
  • Gupta, A., Suri, P. K., & Singh, R. K. (2019). Analyzing the interaction of barriers in e-governance implementation for effective service quality: Interpretive structural modeling approach. Business Perspectives and Research, 7(1), 59–75. https://doi.org/10.1177/2278533718800562
  • Gurley, J. G., & Shaw, E. S. (1960). Money in a theory of finance. Brookings Institutions.
  • Haldar, A., & Sethi, N. (2020). Effect of institutional quality and renewable energy consumption on CO2 emissions- an empirical investigation for developing countries. Environmental Science and Pollution Research, 28, 15485–15503. https://doi.org/10.1007/s11356-020-11532-2
  • Haldar, A., Sucharita, S., Dash, D. P., Sethi, N., & Padhan, P. C. (2023). The effects of ICT, electricity consumption, innovation and renewable power generation on economic growth: An income level analysis for the emerging economies. Journal of Cleaner Production, 384, 135607. https://doi.org/10.1016/j.jclepro.2022.135607
  • Hall, B. H., Lotti, F., & Mairesse, J. (2013). Evidence on the impact of R&D and ICT investments on innovation and productivity in Italian firms. Economics of Innovation and New Technology, 22(3), 300–328. https://doi.org/10.1080/10438599.2012.708134
  • Hausman, J. A. (1978). Specification tests in econometrics. Econometrica, 46(6), 1251–1271. https://doi.org/10.2307/1913827
  • Hawash, R., & Lang, G. (2010). The impact of information technology on productivity in developing countries. (Working paper (19)). German University in Cairo, Faculty of Management Technology.
  • Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal: Promoting Communications on Statistics and Stata, 7(3), 281–312. https://doi.org/10.1177/1536867X0700700301
  • Hong, J. P. (2016). Causal relationship between ICT R&D investment and economic growth in Korea. Technological Forecasting & Social Change, 116, 70–75. https://doi.org/10.1016/j.techfore.2016.11.005
  • Idota, H., Bunno, T., & Tsuji, M. (2020). Impact of ICT on innovation: The case of Japanese SMEs. In Disruptive technology: Concepts, methodologies, tools, and applications (pp. 1624–1651). IGI Global.
  • IMD. (2020). IMD World competitiveness ranking 2020: An overview. Institute for Management Development, Switzerland. https://www.imd.org/news/updates/IMD-2020-World-Competitiveness-Ranking-revealed/
  • ITU. (2021). Measuring digital development: Facts and figures 2021. International Telecommunication Union Publications.
  • Jawad, M., Naz, M., & Maroof, Z. (2021). Era of digital revolution: Digital entrepreneurship and digital transformation in emerging economies. Business Strategy & Development, 4(3), 220–228. https://doi.org/10.1002/bsd2.145
  • Katz, R., & Callorda, F. (2018). The economic contribution of broadband, digitization, and ICT regulation. International Telecommunication Union, published in Switzerland.
  • Keho, Y. (2017). The impact of trade openness on economic growth: The case of Cote d’Ivoire. Cogent Economics & Finance, 5(1), 1332820. https://doi.org/10.1080/23322039.2017.1332820
  • Kim, D. W., Yu, J. S., & Hassan, M. K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1–14. https://doi.org/10.1016/j.ribaf.2017.07.178
  • Kooshki, M. F., & Ismail, R. (2011). The impact of information and communication technology investment on economic growth in newly industrialized countries in Asia. Australian Journal of Basic and Applied Sciences, 5(9), 508–516. https://ssrn.com/abstract=2194854
  • Law, S. H., & Singh, N. (2014). Does too much finance harm economic growth? Journal of Banking & Finance, 41, 36–44. https://doi.org/10.1016/j.jbankfin.2013.12.020
  • Lee, G., Shao, B., & Vinze, A. (2018). The role of ICT as a double-edged sword in fostering societal transformations. Journal of the Association for Information Systems, 19(3), 209–246. https://doi.org/10.17705/1jais.00490
  • Lee, J. W. (2013). The contribution of foreign direct investment to clean energy use, carbon emissions and economic growth. Energy Policy, 55, 483–489. https://doi.org/10.1016/j.enpol.2012.12.039
  • Leitao, J., & Baptista, R. (2011). Inward FDI and ICT: Are they a joint technological driver of entrepreneurship? International Journal of Technology Transfer and Commercialisation, 10(3/4), 268–288. https://doi.org/10.1504/IJTTC.2011.040891
  • Lio, M. C., Liu, M. C., & Ou, Y. P. (2011). Can the internet reduce corruption? A cross-country study based on dynamic panel data models. Government Information Quarterly, 28(1), 47–53. https://doi.org/10.1016/j.giq.2010.01.005
  • Lucas, E. R., Jr. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3–42. https://doi.org/10.1016/0304-3932(88)90168-7
  • Maciulyte, S. A., & Butkus, M. (2020). Impact of information and communication technologies on productivity growth. International Journal of Information Technology and Management, 19(1), 1–18. https://doi.org/10.1504/IJITM.2020.104501
  • Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107(2), 407–437. https://doi.org/10.2307/2118477
  • Merhi, M. I., & Koong, K. S. (2016). E-government effectiveness: A rocket model of contributing user-related factors. International Journal of Services and Standards, 11(1), 1–19. https://doi.org/10.1504/IJSS.2016.076968
  • Mohanty, S., & Sethi, N. (2021). Does inward FDI lead to export performance in India? An empirical investigation Global Business Review, 22(5), 1174–1189. https://doi.org/10.1177/0972150919832770
  • Murillo, M. G. (2010). The effect of internet access on government corruption. Electronic Government, an International Journal, 7(1), 22–40. https://doi.org/10.1504/EG.2010.029889
  • Nair, M., Pradhan, R. P., & Arvin, M. B. (2020). Endogenous dynamics between R&D, ICT, and economic growth: Empirical evidence from the OECD countries. Technology in Society, 62, 101315. https://doi.org/10.1016/j.techsoc.2020.101315
  • Newly, W. K., & West, K. D. (1987). A simple, positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix. Econometrica, 55(3), 703–708. https://doi.org/10.2307/1913610
  • Nguyen, T. P., Dinh, T. T. H., Tran Ngoc, T., & Duong, T. T. T. (2022). Impact of ICT diffusion on the interaction of growth and its volatility: Evidence from cross-country analysis. Cogent Business & Management, 9(1), 2054530. https://doi.org/10.1080/23311975.2022.2054530
  • Ngwenyama, O., & Morawczynski, O. (2009). Factors affecting ICT expansion in emerging economies: An analysis of ICT infrastructure expansion in five latin American countries. Information Technology for Development, 15, 237–258. https://doi.org/10.1002/itdj.20128
  • Niebel, T. (2018). ICT and economic growth - comparing developing, emerging, and developed countries. World Development, 104, 197–211. https://doi.org/10.1016/j.worlddev.2017.11.024
  • OECD. (2020). Digital transformation in the age of COVID-19: Building resilience and bridging divides, digital economy outlook 2020 supplement. www.oecd.org/digital/digital-economy-outlook-covid.pdf
  • Osano, H. M., & Koine, P. W. (2016). Role of foreign direct investment on technology transfer and economic growth in Kenya: A case of the energy sector. Journal of Innovation and Entrepreneurship, 5, 1–25. https://doi.org/10.1186/s13731-016-0059-3
  • Papaioannou, S. K., & Dimelis, S. P. (2007). Information technology as a factor of economic development: Evidence from developed and developing countries. Economics of Innovation and New Technology, 16(3), 179–194. https://doi.org/10.1080/10438590600661889
  • Park, C. H., & Kim, K. (2020). E-government as an anti-corruption tool: Panel data analysis across countries. International Review of Administrative Sciences, 86(4), 691–707. https://doi.org/10.1177/0020852318822055
  • Pesaran, M. H. (2021). General diagnostic tests for cross-sectional dependence in panels. Empirical Economics, 60, 13–50. https://doi.org/10.1007/s00181-020-01875-7
  • Pradhan, R. P., Arvin, M. B., Nair, M., Hall, J. H., & Bennett, S. E. (2022). Institutional development in an information-driven economy: Can ICTs enhance economic growth for low- and lower middle-income countries? Information Technology for Development, 28(3), 468–487. https://doi.org/10.1080/02681102.2022.2051417
  • Qazi, W., Sharif, A., & Raza, S. A. (2017). Foreign direct investment and higher education development in Pakistan: Evidence from structural break testing. International Journal of Education Economics and Development, 8(1), 1–21. https://doi.org/10.1504/IJEED.2017.085359
  • Raheem, I. D., & Oyinlola, M. A. (2013). Financial development, inflation and growth in selected West African countries. International Journal of Sustainable Economy, 7(2), 91–99. https://doi.org/10.1504/IJSE.2015.068682
  • Raheem, I. D., Tiwari, A. K., & Balsalobre, L. D. (2020). The role of ICT and financial development in CO2 emissions and economic growth. Environmental Science and Pollution Research, 27(2), 1912–1922. https://doi.org/10.1007/s11356-019-06590-0
  • Rodrik, D. (2000). Institutions for high-quality growth: What they are and how to acquire them. Studies in Comparative International Development, 35(3), 3–31. https://doi.org/10.1007/BF02699764
  • Romer, P. M. (1994). The origins of endogenous growth. Journal of Economic Perspectives, 8(1), 3–22. https://doi.org/10.1257/jep.8.1.3
  • Roztocki, N., Soja, P., & Weistroffer, H. R. (2019). The role of information and communication technologies in socioeconomic development: Towards a multi-dimensional framework. Information Technology for Development, 25(2), 171–183. https://doi.org/10.1080/02681102.2019.1596654
  • Roztocki, N., & Weistroffer, H. R. (2008). Information technology investments in emerging economies. Information Technology for Development, 14(1), 1–10. https://doi.org/10.1002/itdj.20084
  • Saidi, K., & Mongi, C. (2018). The effect of education. R&D, and ICT on Economic Growth in High Income Countries. Economic Bulletin, 38(2), 810–825.
  • Samir, S., & Mefteh, H. (2020). Empirical analysis of the dynamic relationships between transport, ICT and FDI in 63 countries. International Economic Journal, 34(3), 448–471. https://doi.org/10.1080/10168737.2020.1765186
  • Sassi, S., & Mohamed, G. (2013). Financial development, ICT diffusion and economic growth: Lessons from MENA region. Telecommunications Policy, 37, 252–261. https://doi.org/10.1016/j.telpol.2012.12.004
  • Schinagl, S., & Shahim, A. (2020). What do we know about information security governance? “From the basement to the boardroom”: towards digital security governance. Information & Computer Security, 28(2), 261–292. http://doi.org/10.1108/ICS-02-2019-0033
  • Schumpeter, J. A. (1911). The theory of economic development (social science classic series). Transaction Publishers.
  • Schumpeter, J. A. (1939). Business cycles. (Vol. 1, pp. 161–174). Mcgraw-hill.
  • Schumpeter, J. A. (1942). Capitalism, socialism and democracy. Harper & Row.
  • Sethi, N., Mohanty, S., Das, A., & Sahoo, M. (2020). Health expenditure and economic growth nexus: Empirical evidence from south Asian countries. Global Business Review, 1–15. https://doi.org/10.1177/0972150920963069
  • Shamim, F. (2007). The ICT environment, financial sector and economic growth: A cross-country analysis. Journal of Economic Studies, 34(4), 352–370. https://doi.org/10.1108/01443580710817452
  • Sharafat, A., & Lehr, W. H. (2017). ICT-centric economic growth, innovation, and job creation. International Telecommunication Union.
  • Shim, D. C., & Eom, T. H. (2008). E-government and anti-corruption: Empirical analysis of international data. International Journal of Public Administration, 31(3), 298–316. https://doi.org/10.1080/01900690701590553
  • Sinha, M., & Sengupta, P. P. (2022). FDI inflow, ICT expansion and economic growth: An empirical study on Asia-pacific developing countries. Global Business Review, 23(3), 804–821. https://doi.org/10.1177/0972150919873839
  • Solow, R. (1987). We'd better watch out. New York Times Book Review, 36.
  • Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513
  • Srivastava, S. C., Teo, T. S. H., & Devaraj, S. (2016). You can’t bribe a computer: Dealing with the societal challenge of corruption through ICT. MIS Quarterly, 40(2), 511–526. https://doi.org/10.25300/MISQ/2016/40.2.14
  • Stanley, T. D., Doucouliagos, H., & Steel, P. (2018). Does ICT generate economic growth? A meta-regression analysis. Journal of Economic Surveys, 32(3), 705–726. https://doi.org/10.1111/joes.12211
  • Svirydzenka, K. (2016). Introducing a new broad-based index of financial development (IMF working paper). Strategy, Policy and Review Department, International Monetary Fund.
  • Tran, O. K. T., Le, H. D., & Nguyen, A. H. V. (2021). Role of institutional quality in economic development: A case study of Asian countries. Problems and Perspectives in Management, 19(2), 357–369. https://doi.org/10.21511/ppm.19(2).2021.29
  • Tripathi, M., & Inani, S. K. (2020). Does information and communications technology affect economic growth? Empirical evidence from SAARC countries. Information Technology for Development, 26, 773–787. https://doi.org/10.1080/02681102.2020.1785827
  • Ullah, I., & Khan, M. A. (2017). Institutional quality and foreign direct investment inflows: Evidence from Asian countries. Journal of Economic Studies, 44(6), 1030–1050. https://doi.org/10.1108/JES-10-2016-0215
  • UNCTAD. (2019). Digital economy report 2019: Value creation and capture: Implications for developing countries. United Nations Conference on Trade and Development. https://unctad.org/publication/digital-economy-report-2019.
  • Valeriani, E., & Peluso, S. (2011). The impact of institutional quality on economic growth and development: An empirical study. Journal of Knowledge Management, Economics, and Information Technology, 1(6), 1–25.
  • Vianna, A. C., & Mollick, A. V. (2018). Institutions: Key variable for economic development in Latin America. Journal of Economics and Business, 96, 42–58. https://doi.org/10.1016/j.jeconbus.2017.12.002
  • Vu, K. M. (2011). ICT as a source of economic growth in the information age: Empirical evidence from the 1996–2005 period. Telecommunications Policy, 35(4), 357–372. https://doi.org/10.1016/j.telpol.2011.02.008
  • Westerlund, J., & Edgerton, D. L. (2007). A panel bootstrap cointegration test. Economics Letters, 97(3), 185–190. https://doi.org/10.1016/j.econlet.2007.03.003
  • Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data. MIT Press.
  • World Bank. (2016). World development report 2016: Digital dividends. World Bank Publications.
  • Xiao, X., Califf, C. B., Sarker, S., & Sarker, S. (2013). ICT innovation in emerging economies: A review of the existing literature and a framework for future research. Journal of Information Technology, 28(4), 264–278. https://doi.org/10.1057/jit.2013.20
  • Yazdan, G. F., & Hossein, S. S. M. (2013). FDI and ICT effects on productivity growth. Procedia-Social and Behavioural Sciences, 93, 1710–1715. https://doi.org/10.1016/j.sbspro.2013.10.104
  • Yousefi, A. (2011). The impact of information and communication technology on economic growth: Evidence from developed and developing countries. Economics of Innovation and New Technology, 20(6), 581–596. https://doi.org/10.1080/10438599.2010.544470

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.