The Impact of ICT and FDI as Drivers to Economic Growth In ASEAN-8 Countries: A Panel Regression Analysis
DOI:
https://doi.org/10.15282/ijim.9.0.2021.5958Keywords:
ICT diffusion, FDI, Economic growth, ASEAN-8Abstract
Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth. The durability of this technology is demonstrated by the rapid proliferation of the Internet, mobile phones and cellular networks across the globe. However, among economic scholars, the question of exactly how the spread of ICT affects economic development and FDI, especially in ASEAN countries with differences in levels of income, remains unanswered. The aim of this study was essentially to explore the relationship between ICT dissemination, FDI and economic growth in ASEAN-8 countries. By using data from 2003 to 2017, the panel regression analysis was used to evaluate these relationships. The results showed that the dissemination of ICT and FDI are important and they have a positive effect on the ASEAN-8 countries’ economic development.
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Aghaei, M., & Rezagholizadeh, M. (2017). The Impact of Information and Communication Technology (ICT) on Economic Growth in the OIC Countries. Economic and Environmental Studies, 17(42), 255-276.
Ali, N., & Mingque, Y. (2018). Does Foreign Direct Investment Lead to Economic Growth? Evidences from Asian Developing Countries. International Journal of Economics and Finance, 10 (3), 109-119.
Azam, M., & Ahmed, A. M. (2015). Role of human capital and foreign direct investment in promoting economic growth: evidence from Commonwealth of Independent States. International Journal of Social Economics, 42(2), 98-111.
Bahrini, R.; Qaffas, A.A. (2019). Impact of Information and Communication Technology on Economic Growth: Evidence from Developing Countries. Economies, 7, 21.
Castaldo, A., Fiorini, A., & Maggi, B. (2018). Measuring (in a time of crisis) the impact of broadband connections on economic growth: an OECD panel analysis. Applied Economics, 50 (8), 838-854.
Chien, M.S., Cheng, C. Y. and Kurniawati, M.A. (2020). The non-linear relationship between ICT diffusion and financial development. Telecommunication Policy, 44, 102023.
Das, A., Chowdhury, M., & Seaborn, S., (2016). ICT Diffusion, Financial Development and Economic Growth: New Evidence from Low and Lower Middle-Income Countries, Journal of the Knowledge Economy, Vol. 9(3), pages 928-947
Eudelle, P., & Shrestha, A. (2017). Foreign Direct Investment and Economic Growth: The Cases of Singapore and Oman. Global Policy, 8 (3), 402-405.
Evangelista, R., Guerrieri, P. & Meliciani, V. (2014). The economic impact of digital technologies in Europe. Economics of Innovation and New Technology, Vol. 23, Issue 8, 802-824.
Fern´andez-Portillo, A., Almod´ovar-Gonz´alez, M. and Hern´andez-Mogoll´on, R. (2020). Impact of ICT development on economic growth. A study of OECD European union countries. Technology in Society, 63,101420.
Hanclova, J., Doucek, P., Fischer, J., and Vltavska, K. (2015), Does ICT capital affect economic growth in the EU-15 and EU-12 countries? Journal of Business Economics and Management, 16(2), 387–406.
Khalili, F., Lau W.P., & Cheong, K.C., (2014). ICT as a source of economic growth in the information age: Empirical evidence from ICT leading countries. https://umexpert.um.edu.my/file/publication/00008643_107200.pdf
Latif, Z., Danish, Y.M., Latif, S., Ximeia, Pathana, Z. H., Salama, S. & Jianqiua, Z. (2018). The dynamics of ICT, foreign direct investment, globalization and economic growth: Panel estimation robust to heterogeneity and cross-sectional dependence. Telematics and Informatics, Vol. 35, 318–328.
Nair, M., Pradhan, R.P. and Arvin, M.B. (2020). Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries. Technology in Society, 62, 101315.
OECD (2017), OECD Southeast Asia Regional Forum - Opportunities and Policy Challenges of Digitalisation in Southeast Asia.
Pegkas, P. (2015). The impact of FDI on economic growth in Eurozone countries. The Journal of Economic Asymmetries, 12(2), 124-132.
Pradhan, R. P. Arvin, M.B., Bahmani, S. & Bennett, S. E. (2017). The innovation- growth link in OECD countries: Could other macroeconomic variables matter? Technology in Society, Vol. 51, 113-123.
Pradhan, R. P., Mallik, G & Bagchi, T.P. (2018). Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. IIMB Management Review, Vol. 30, Issue 1, 91-103
Samimi, A.J., Ledary, R.B. & Samimi, M. H. J. (2015). ICT and economic growth: A comparison between developed and developing countries. International Journal of Life Science and Engineering, Vol. 1, No. 1, 26-32
Sedika, Wesam M.; Emamb, Waleed (2019). The impact of ICT capital and use on economic growth, The 2nd Europe – Middle East – North African Regional Conference of the International Telecommunications Society: Leveraging Technologies for Growth, February 18-21, 2019, Aswan, Egypt, International Telecommunications Society (ITS), Aswan
Sepehrdoust, H., (2018). Impact of information and communication technology andfinancialdevelopment on economic growth of OPEC developing economies, Kasetsart Journal of Social Sciences, 1-6.
Schankerman (2010), The Economic Impact of ICT, Final Report for the European Commission.
Shahiduzzaman, M., & Alam, K. (2014). Information technology and its changing roles to economic growth and productivity in Australia. Telecommunications Policy, Vol. 38, Issue 2, 125-135
Toader, E., Firtescu, B., Roman, A., & Anton, S. (2018). Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries. Sustainability, 10(10), 3750
UNCTAD, 2017. United Nations Conference on Trade and Development 2017. Information Economic Report. https://unctad.org/en/PublicationsLibrary/ier2017_overview_en.pdf
Vu, K. M. (2011). ICT as a source of economic growth in the information age: empirical evidence from the 1996-2005 period. Telecommunications Policy, 35, 357–372.
Yousefi, A. (2011). The impact of information and communication technology on economic growth: evidence from developed and developing Countries. Economics of Innovation and New Technology, 20(6), 581-596.
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Published
2021-01-03
How to Cite
Sapuan, N. M., & Roly, M. R. (2021). The Impact of ICT and FDI as Drivers to Economic Growth In ASEAN-8 Countries: A Panel Regression Analysis. International Journal of Industrial Management, 9, 91–98. https://doi.org/10.15282/ijim.9.0.2021.5958
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Vol 9 2021
