Does information and communications technology affect economic growth? Empirical evidence from SAARC countries

Manas Tripathi and Sarveshwar Kumar Inani

Information Technology for Development, 2020, vol. 26, issue 4, 773-787

Abstract: This study investigates the impact of Information and Communications Technology (ICT) on economic growth (gross domestic product) for member countries of South Asian Association for Regional Cooperation (SAARC) using annual data for the period 1990–2014. The study has employed augmented Cobb–Douglas production function by incorporating ICT along with capital and labor. We have taken teledensity (number of fixed and mobile phones per 10,000 people) as the proxy of ICT. This study has included only four SAARC countries (Bangladesh, India, Sri Lanka, and Pakistan) due to data constraints. Our findings reveal a positive and statistically significant effect of ICT on economic growth using panel data techniques. However, the impact of ICT on economic growth is highest for India followed by Sri Lanka, Bangladesh, and Pakistan respectively. This study has crucial policy implications for SAARC countries as they have started giving due significance to the issues related to ICT these years.

Date: 2020
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DOI: 10.1080/02681102.2020.1785827

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