Private Investment in ICT Sector of Indian States

Jagannath Mallick

Indian Economic Review, 2012, vol. 47, issue 1, 33-56

Abstract: This paper provides a framework to estimate private investment in Information and Communication Technology (ICT) sector in Indian states and explores the determinants using panel regression methods covering the period from 1999–2000 to 2004–05. There is no study dealing with these issues in the Indian context, importantly due to the paucity of data. The study finds that there is high variation in private investment in ICT sector across the states. The factors including labour productivity, agglomeration of economy, Research and Development, physical infrastructures, ICT sector specific infrastructure and human resources, and state’s wealth explain the inter-state variation in private investment in ICT sector in the Indian states. As investment in the ICT sector is mainly sourced from the private sector, and has a crucial role in the process of economic growth in India, the policy makers should lay emphasis on these factors influencing the private investment in ICT sector to reduce the disparity in economic growth across states.

Keywords: Private Investment; State Economy; ICT Sector; India (search for similar items in EconPapers)
JEL-codes: C23 E22 R11 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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