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Information Resources Management Association
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Financial Analysis of the ICT Industry: A Regulatory Perspective

Financial Analysis of the ICT Industry: A Regulatory Perspective
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Author(s): Somesh K. Mathur (IIT Kanpur, India)
Copyright: 2010
Pages: 31
Source title: Handbook of Research on E-Government Readiness for Information and Service Exchange: Utilizing Progressive Information Communication Technologies
Source Author(s)/Editor(s): Hakikur Rahman (University of Minho, Portugal)
DOI: 10.4018/978-1-60566-671-6.ch006


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Analysis of financial issues for the information and communication technology (ICT) sector is an essential element to study the progress of the sector, and especially the analysis should relate to the regulatory perspective of the country, if it would judge the overall e-government scenario of that country. Along this context, this chapter attempts to quantify the technical efficiency of the ICT sector in 45 countries during 2002-03, and in 52 countries during 2006-07 by using DEA method; Malmquist index of productivity growth in the ICT sector in 45 countries between these two periods; the proportions of the productivity growth attributable to efficiency change and technical change; and the effect on total factor productivity (TFP) of catching-up, the export ratio, broadband policy, and technical readiness using a regression analysis. As a result, the chapter finds that the ICT sectors in South Korea and Argentina were relatively efficient in 2002-03, while in 2006-07, the ICT sectors in Bahrain, Brazil, and Sweden showed relative efficiency. Furthermore, the productivity growth in the ICT sector in developing and newly industrialized countries is slightly higher than the growth in developed and transition countries, suggesting the catching-up of developing and newly industrialized countries. This catching-up effect is also confirmed in the regression analysis. Finally, this chapter concludes that, technological readiness, which is a measure of the agility with which an economy adopts existing technologies, has a positive impact on TFP growth.

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