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

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Author(s): Erkan Erdil (Middle East Technical University, Turkey), I. Hakan Yetkiner (Izmir University of Economics, Turkey)and Burcu Türkcan (Ege University, Turkey)
Copyright: 2010
Pages: 14
Source title: Sustainable Economic Development and the Influence of Information Technologies: Dynamics of Knowledge Society Transformation
Source Author(s)/Editor(s): Muhammed Karatas (Mugla University, Turkey)and Mustafa Zihni Tunca (Suleyman Demirel University, Turkey)
DOI: 10.4018/978-1-61520-709-1.ch010

Keywords: Business Science Reference / Economics and Economic Theory / Environment & Agriculture / Sustainable Development

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Abstract

This chapter tests the impact of ICT on economic growth for underdeveloped and developing countries by using a panel dataset for the period of 1995-2006. The authors first develop the theory of the relationship between ICT and economic growth. They 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, the authors 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. They find that ICT has positive and significant effect on economic growth even after the use of some control variables.

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

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