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Paper Information

Journal:   IRANIAN ECONOMIC RESEARCH   WINTER 2008 , Volume - , Number 33; Page(s) 25 To 51.
 
Paper: 

THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON TOTAL FACTOR PRODUCTIVITY GROWTH; A CROSS-COUNTRY STUDY

 
 
Author(s):  RAHMANI T., HAYATI S.
 
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Abstract: 

It has been less than two decades that ICT is regarded by economists as one of the factors of productivity growth. The IGT capital bears the features of knowledge capital, so it can influence productivity growth both through capital deepening and its spillover effects. There have been many studies in the literature on the effect of ICT on productivity; however, the TFP effect of ICT in international context is less known. This paper investigates the relation between ICT spillovers and TFP growth using a panel data for 69 countries for the period 1993-2003. The results show both ICT domestic investment and ICT international spillovers have positive and significant effects on TFP growth across the countries. However the ICT impact on TFP is higher in developed countries than that in developing countries. According to the findings of this study, we conclude that the developing countries can benefits more from ICT investment if they have required infrastructure such as human capital and a trade openness policy.

 
Keyword(s): INFORMATION AND COMMUNICATION TECHNOLOGY (ICT), SPILLOVERS, TOTAL FACTOR PRODUCTIVITY (TFP), PANEL DATA
 
References: 
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