ICT and Service Exports: An Empirical Investigation for South Asia

Ailya Hanif, Nimra Zafar, Basharat Batool, Sundas Shafi and Muhammad Hanif
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Ailya Hanif: Department of Economics, Kohat University of Science and Technology, Kohat, Pakistan
Nimra Zafar: Department of Economics, Kohat University of Science and Technology, Kohat, Pakistan
Basharat Batool: Department of Economics, Kohat University of Science and Technology, Kohat, Pakistan
Sundas Shafi: Department of Economics, Kohat University of Science and Technology, Kohat, Pakistan
Muhammad Hanif: Department of Economics, Kohat University of Science and Technology, Kohat, Pakistan

Bulletin of Business and Economics (BBE), 2024, vol. 13, issue 2, 298-302

Abstract: Finance, transportation, communication, wholesaling, and other business services depend on the services industry. Services and their subservices contribute to various economic activities and may also boost economic growth by improving other enterprises. Therefore, service export determinants must be studied. Endogenous growth theory underpins human capital buildup in commerce and also this theory provides ground for technical advancement and learning by doing to boost productivity and trade. Endogenous growth and network externalities theories underpin ICT in trade. Therefore, this study analyzes the impact of ICT on service exports along with human capital and trade openness as an explanatory variables in selected South Asia. Panel data from 2005 to 2020 is collected for selected South Asian nations. Panel cointegration tests confirmed the long run relationship between variables when panel data order was confirmed. Panel fully modified least squares is used for long run estimates and results indicate that ICT and human capital boost South Asian service exports. Governments should improve internet access, cell phone and broadband infrastructure, digital payments, and e-commerce. These countries should also collaborate on SAARC human capital development.

Keywords: human capital; ICT; service exports; panel study (search for similar items in EconPapers)
Date: 2024
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