Analysis of the Financial Model of the ICT Price Basket on Financial Development Indicators of GCC Countries

Faris ALShubiri

The Review of Socionetwork Strategies, 2020, vol. 14, issue 1, 147-170

Abstract: Abstract This study aims to analyse the financial model of the information and communication technology (ICT) price basket to determine is effect on financial development indicators. This model measures cost as a percentage of gross national income per capita and the affordability of ICT services in Gulf Cooperation Council (GCC) countries for the period of 2008–2016. The results show that Saudi Arabia and Oman had high ICT price baskets, while the ICT price basket of Kuwait was low. This study applied panel-corrected standard errors, fixed effect, random effect and the generalized method of moments methods. The same results were confirmed in all tests, which showed a potentially negative relationship between ICT basket prices and financial development, as measured by domestic credit and market capitalization. The ICT basket price had a positive effect when financial development was measured by the stock market. The main conclusion is that decision-makers should adopt a long-term flexible strategy to improve the level of financial development indicators based on the ability of the GCC countries to afford ICT development.

Keywords: ICT price basket; Financial growth; Financial indicators; GCC countries (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12626-019-00052-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:trosos:v:14:y:2020:i:1:d:10.1007_s12626-019-00052-2

Ordering information: This journal article can be ordered from
https://www.springer ... ystems/journal/12626

DOI: 10.1007/s12626-019-00052-2

Access Statistics for this article

The Review of Socionetwork Strategies is currently edited by Katsutoshi Yada, Yasuharu Ukai and Marshall Van Alstyne

More articles in The Review of Socionetwork Strategies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().