How Does Information and Communication Technologies Affect Economic Growth? A Comparative Analysis of the Economies of the European Union and Asia-Pacific Region

Year 2024, , 99 - 114, 16.02.2024

Tamerlan Mashadihasanli , Haluk Zülfikar

https://doi.org/10.26650/JEPR1392777

Abstract

In the contemporary era of digitization, economies have been significantly influenced by the emergence of information and communication technology (ICT). In this digital age, the ICT sector all over the world has entered a period of rapid growth. The swift advancements within the ICT sector have played a pivotal role in shaping the global economy while simultaneously influencing the economic landscape of the European Union (EU) and Asia-Pacific region (APAC) countries. The purpose of this study is to comparatively evaluate ICT, its place in the EU and APAC countries’ economies, and how it affected economic growth between 2007-2019. The dataset was analyzed using the Levin, Lin, and Chu unit root test, pooled ordinary least-squares (OLS), fixed effects, random effects, and two-step system generalized method of moments (GMM) estimators. The two-step system GMM findings show ICT’s effects on economic growth to vary according to regional conditions. While Internet use has been found to contribute positively to the economic growth of the countries within the EU, this situation was observed to have had the opposite effect in the APAC region countries. These region-specific dynamics highlight the need for tailored policy considerations, suggesting the impact of ICT on economic development to be contingent upon regional conditions. The novelty of this research lies in its cross-regional perspective, thus contributing valuable knowledge for informed policy decisions in the increasingly interconnected global landscape. This study emphasizes the importance of regional dynamics in understanding the influence ICT has on economic growth and can guide policy makers and business leaders in shaping ICT strategies and investments according to regional characteristics.

JEL Classification : O11 , O20 , O33

Keywords

ICT, economic growth, GMM, European Union countries, Asia-Pacific region countries

Bilgi ve İletişim Teknolojileri Ekonomik Büyümeyi Nasıl Etkiler? Avrupa Birliği ve Asya Pasifik Bölgesi Ekonomileri İçin Karşılaştırmalı Bir Analiz

Abstract

Çağdaş dijitalleşme çağında ekonomi, bilgi ve iletişim teknolojilerinin (BİT) ortaya çıkmasından önemli ölçüde etkilenmektedir. İçinde bulunduğumuz dijital çağda tüm dünyada BİT sektörü hızlı bir büyüme sürecine girmiştir. Bu hızlı ilerlemeler, BİT sektörlerinde, dünya ekonomisini ve buna paralel olarak Avrupa Birliği (AB) ve Asya-Pasifik bölgesi (APAC) ülkelerinin ekonomisini etkileme eğilimindedir. Bu çalışmanın yürütülmesindeki amaç BİT’in AB ve APAC ülkeleri ekonomisindeki yeri ve ekonomik büyümeyi nasıl etkilediği konusunda 2007-2019 yılları arasında karşılaştırmalı bir değerlendirme yapmaktır. Veri seti Levin, Lin & Chu birim kök testi, Pooled OLS, Sabit Etkiler, Rastgele Etkiler ve iki adımlı sistem Genelleştirilmiş Momentler (GMM) tahmin edicileri kullanılarak analiz edilmiştir. İki aşamalı sistem GMM bulguları, BİT’in ekonomik büyüme üzerindeki etkilerinin bölgesel koşullara göre değişebileceğini göstermektedir. AB ülkelerinde internet kullanımının ekonomik büyümeyi olumlu etkilediği saptanırken, APAC bölgesi ülkelerinde bu durumun tam tersi etki yarattığı gözlemlenmiştir. Bu bölgeye özgü dinamikler, özel politika değerlendirmelerine olan ihtiyacın altını çiziyor ve BİT’in ekonomik kalkınmadaki rolünün bölgesel koşullara bağlı olduğunu öne sürüyor. Araştırmamızın yeniliği, giderek birbirine bağlanan küresel ortamda bilinçli politika kararlarına değerli bilgiler katan bölgeler arası perspektifinde yer almaktadır. Bu çalışma, BİT’in ekonomik büyüme üzerindeki etkilerinin anlaşılmasında bölgesel dinamiklerin önemini vurgulamakta ve politika yapıcılara ve iş dünyası liderlerine BİT stratejilerini ve yatırımlarını bölgesel özelliklere göre şekillendirmede yol göstermektedir.

Jel Sınıflaması: O11, O20, O33

Keywords

BİT, ekonomik büyüme, GMM, Avrupa Birliği ülkeleri, Asya-Pasifik bölgesi ülkeleri

References

• Adedoyin, F. F., Bekun, F. V., Driha, O. M., & Balsalobre-Lorente, D. (2020). The effects of air transportation, energy, ICT and FDI on economic growth in the industry 4.0 era: Evidence from the United States. Technological Forecasting and Social Change, 160, 120297. google scholar
• Agarwal, S., Sharma, G., Jhingran, V., Sharma, V., & Rawat, Y. (2018). Role of ICT in economic growth of India. In Disruptive Technologies Transforming Businesses Conference. Kanpur. google scholar
• Alper, F. Ö. (2018). Bilgi ve İletişim Teknolojilerinin Ekonomik Büyüme ve İşsizlik Üzerine Etkisi: Seçilmiş AB Ülkeleri ve Türkiye Örneği. Yasama Dergisi(36), 45-65. google scholar
• 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, 1847979019870670. google scholar
• Appiah-Otoo, I., & Song, N. (2021). The impact of ICT on economic growth-Comparing rich and poor countries. Telecommunications Policy, 45(2). google scholar
• Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of econometrics, 68(1), 29-51. google scholar
• Asongu, S. A., & Odhiambo, N. M. (2019). How enhancing information and communication technology has affected inequality in Africa for sustainable development: An empirical investigation. Sustainable Development, 27(4), 647-656. google scholar
• Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of econometrics, 87(1), 115-143. google scholar
• Chakpitak, N., Maneejuk, P., Chanaim, S., & Sriboonchitta, S. (2018). Thailand in the era of digital economy: How does digital technology promote economic growth?. In Predictive Econometrics and Big Data TES2018 (pp. 350-362). Springer International Publishing. google scholar
• Czernich, N., Falck, O., Kretschmer, T., & Woessmann, L. (2011). Broadband infrastructure and economic growth. The Economic Journal, 121(552), 505-532. google scholar
• David, O. O., & Grobler, W. (2020). Information and communication technology penetration level as an impetus for economic growth and development in Africa. Economic research-Ekonomska istrazivanja, 33(1), 1394-1418. google scholar
• Donou-Adonsou, F., & Lim, S. (2018). On the importance of Chinese investment in Africa. Review of development finance, 8(1), 63-73. google scholar
• Farhadi, M., & Fooladi, M. (2020). Impact of Information and Communication Technology Access on Economic Growth. Journal of Practical Information Technology, 1(3), 11-22. google scholar
• Ghosh, S. (2017). Broadband penetration and economic growth: Do policies matter?. Telematics and informatics, 34(5), 676-693. google scholar
• Hansen, L. 1982. Large sample properties of generalized method of moments estimators. Econometrica 50(3): 1029-1054. google scholar
• Hekim Yılmaz, D., & Kırışkan, I. (2020). Türkiye’de Telekomünikasyon Altyapısı ve Ekonomik Büyüme. Türk Dünyası Sosyal Bilimler Dergisi(92), 55-84. google scholar
• Ishida, H. (2015). The effect of ICT development on economic growth and energy consumption in Japan. Telematics and Informatics, 32(1), 79-88. google scholar
• Khan, H., Khan, U., Jiang, L. J., & Khan, M. A. (2020). Impact of infrastructure on economic growth in South Asia: Evidence from pooled mean group estimation. The Electricity Journal, 33(5), 106735. google scholar
• Koç, Ü. (2021). Bilişim Teknolojileri ve Ekonomik Büyüme. Üçüncü Sektör Sosyal Ekonomi Dergisi, 56(2), 1231-1244. google scholar
• Kumar, R. R., Stauvermann, P. J., & Samitas, A. (2016). The effects of ICT* on output per worker: A study of the Chinese economy. Telecommunications Policy, 40(2-3), 102-115. google scholar
• Kurniawati, M. A. (2020). The role of ICT infrastructure, innovation and globalization on economic growth in OECD countries, 1996-2017. Journal of Science and Technology Policy Management, 11(2), 193-215. google scholar
• Kurniawati, M. A. (2021). Analysis of the impact of information communication technology on economic growth: empirical evidence from Asian countries. Journal of Asian Business and Economic Studies, 1-17. google scholar
• Myovella, G., Karacuka, M., & Haucap, J. (2020). Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies. Telecommunications Policy, 44(2). google scholar
• 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. google scholar
• Niebel, T. (2018). ICT and economic growth - Comparing developing, emerging and developed countries. World Development(104), 197-211. google scholar
• Salahuddin, M., & Alam, K. (2015). Internet usage, electricity consumption and economic growth in Australia: A time series evidence. Telematics and Informatics, 32(4), 862-878. google scholar
• Salahuddin, M., & Gow, J. (2016). The effects of Internet usage, financial development and trade openness on economic growth in South Africa: A time series analysis. Telematics and Informatics, 33(4), 1141-1154. google scholar
• Sargan, J. 1958. The estimation of economic relationships using instrumental variables. Econometrica 26(3): 393-415. google scholar
• Tunalı, H., & Güz, T. (2021). Bilgi ve İletişim Teknolojileri Gelişim Endeksi ve Ekonomik Büyüme İlişkisinin Panel Veri Modelleri ile Karşılaştırmalı Analizi. İktisadi İdari ve Siyasal Araştırmalar Dergisi, 6(15), 249-261. google scholar
• Zhang, J., & Danish. (2019). The dynamic linkage between information and communication technology, human development index, and economic growth: evidence from Asian economies. Environmental Science and Pollution Research, 26, 26982-26990. google scholar
• Zhou, X., Zhou, D., & Wang, Q. (2018). How does information and communication technology affect China’s energy intensity? A three-tier structural decomposition analysis. Energy, 151, 748-759. google scholar