Journal of Information Processing Systems

Korea Information Processing Society (한국정보처리학회)
권호 표지
DOI QR코드

DOI QR Code

The Nexus among Globalization, ICT and Economic Growth: An Empirical Analysis

  • Liu, Ximei (School of Economics and Management, Zhejiang Sci-Tech University) ;
  • Latif, Zahid (School of Economics and Management, Beijing University of Posts and Telecommunications) ;
  • Xiong, Daoqi (Zhejiang Huayun Information Technology Co. Ltd.) ;
  • Yang, Mengke (School of Economics and Management, Beijing University of Posts and Telecommunications) ;
  • Latif, Shahid (Sarhad University of Science and Information Technology) ;
  • Wara, Kaif Ul (Islamia College Peshawar Campus)
  • Received : 2020.12.23
  • Accepted : 2021.02.03
  • Published : 2021.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

Globalization has integrated the world through interaction among countries and people with the help of information and telecommunication technology (ICT). The rapid mode of globalization has put a new life in ICT and economic sector. The key focus of this study is to examine the nexus among the globalization, ICT and economic growth. This study uses autoregressive distributed lag model (ARDL), vector error correction model (VECM) and econometric method spanning from 1990 to 2015. The empirical result highlights that the globalization stimulates economic growth of a country. In addition, both the internet penetration and the mobile phone usage contribute to the economic growth. Lastly, this article contributes important policy lessons on strengthening the economy by utilizing ICT with the rapid globalization.

Keywords

Acknowledgement

This work is supported by Natural Science Foundation of Zhejiang Province (No. LQ21G010007) and the Scientific Research Foundation of Zhejiang Sci-Tech University (No. 18092249-Y).

References

  1. F. Ahmed, M. Naeem, and M. Iqbal, "ICT and renewable energy: a way forward to the next generation telecom base stations," Telecommunication Systems, vol. 64, no. 1, pp. 43-56, 2017. https://doi.org/10.1007/s11235-016-0156-4
  2. R. P. Pradhan, M. B. Arvin, J. H. Hall, and S. E. Bennett, "Mobile telephony, economic growth, financial development, foreign direct investment, and imports of ICT goods: the case of the G-20 countries," Economia e Politica Industriale, vol. 45, no. 2, pp. 279-310, 2018. https://doi.org/10.1007/s40812-017-0084-7
  3. Z. Latif, Z. Jianqiu, S. Salam, Z. H. Pathan, N. Jan, and M. Z. Tunio, "FDI and 'political' violence in Pakistan's telecommunications," Human Systems Management, vol. 36, no. 4, pp. 341-352, 2017. https://doi.org/10.3233/hsm-17154
  4. I. Adam and M. Fazekas, Are Emerging Technologies Helping win the Fight against Corruption in Developing Countries. Oxford, UK: Pathways for Prosperity Commission, 2018.
  5. Z. Latif, S. Latif, L. Ximei, Z. H. Pathan, S. Salam, and Z. Jianqiu, "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, no. 2, pp. 318-328, 2018. https://doi.org/10.1016/j.tele.2017.12.006
  6. C. Chakraborty and B. Nandi, "'Mainline' telecommunications infrastructure, levels of development and economic growth: evidence from a panel of developing countries," Telecommunications Policy, vol. 35, no. 5, pp. 441-449, 2011. https://doi.org/10.1016/j.telpol.2011.03.004
  7. R. P. Pradhan, M. B. Arvin, N. R. Norman, and S. K. Bele, "growth and the development of telecommunications infrastructure in the G-20 countries: a panel-VAR approach," Telecommunications Policy, vol. 38, no. 7, pp. 634-649, 2014. https://doi.org/10.1016/j.telpol.2014.03.001
  8. R. M. Solow, "A contribution to the theory of economic growth," The Quarterly Journal of Economics, vol. 70, no. 1, pp. 65-94, 1956. https://doi.org/10.2307/1884513
  9. R. L. Katz, "The economic and social impact of telecommunications output," Intereconomics, vol. 44, no. 1, pp. 41-48, 2000. https://doi.org/10.1007/s10272-009-0276-0
  10. V. Minghetti and D. Buhalis, "Digital divide in tourism," Journal of Travel Research, vol. 49, no. 3, pp. 267-281, 2010. https://doi.org/10.1177/0047287509346843
  11. B. B. Rao, "Estimates of the steady state growth rates for selected Asian countries with an extended Solow model," Economic Modelling, vol. 27, no. 1, pp. 46-53, 2010. https://doi.org/10.1016/j.econmod.2009.07.020
  12. R. R. Kumar and R. Kumar, "Exploring the nexus between information and communications technology, tourism and growth in Fiji," Tourism Economics, vol. 18, no. 2, pp. 359-371, 2012. https://doi.org/10.5367/te.2012.0117
  13. M. Shahiduzzaman and K. Alam, "The long-run impact of information and communication technology on economic output: the case of Australia," Telecommunications Policy, vol. 38, no. 7, pp. 623-633, 2014. https://doi.org/10.1016/j.telpol.2014.02.003
  14. M. Hajli, J. M. Sims, and V. Ibragimov, "Information technology (IT) productivity paradox in the 21st century," International Journal of Productivity and Performance Management, vol. 64, no. 4, pp. 457-478, 2015. https://doi.org/10.1108/IJPPM-12-2012-0129
  15. X. Liu, K. Latif, Z. Latif, and N. Li, "Relationship between economic growth and CO2 emissions: does governance matter?," Environmental Science and Pollution Research, vol. 27, pp. 17221-17228, 2020. https://doi.org/10.1007/s11356-020-08142-3
  16. M. Cardona, T. Kretschmer, and T. Strobel, "ICT and productivity: conclusions from the empirical literature," Information Economics and Policy, vol. 25, no. 3, pp. 109-125, 2013. https://doi.org/10.1016/j.infoecopol.2012.12.002
  17. H. Ishida, "The effect of ICT development on economic growth and energy consumption in Japan," Telematics and Informatics, vol. 32, no. 1, pp. 79-88, 2015. https://doi.org/10.1016/j.tele.2014.04.003
  18. S. Dewan and K. L. Kraemer, "Information technology and productivity: evidence from country-level data," Management Science, vol. 46, no. 4, pp. 548-562, 2000. https://doi.org/10.1287/mnsc.46.4.548.12057
  19. M. Ashraf and R. Hoque, "An illustration of information communication technology (ICT)-mediated innovation-adoption-implementation in rural Bangladesh," Tekhne, vol. 14, no. 1, pp. 45-51, 2016.
  20. M. E. Batuo, "The role of telecommunications infrastructure in the regional economic growth of Africa," The Journal of Developing Areas, vol. 49, no. 1, pp. 313-330, 2015. https://doi.org/10.1353/jda.2015.0005
  21. H. Ishida, "The effect of ICT development on economic growth and energy consumption in Japan," Telematics and Informatics, vol. 32, no. 1, pp. 79-88, 2015. https://doi.org/10.1016/j.tele.2014.04.003
  22. S. K. Inani and M. Tripathi, "The nexus of ICT, electricity consumption and economic growth in India: an ARDL approach," International Journal of Indian Culture and Business Management, vol. 14, no. 4, pp. 457-479, 2017. https://doi.org/10.1504/IJICBM.2017.084371
  23. J. Jalava and M. Pohjola, "The roles of electricity and ICT in economic growth: case Finland," Explorations in Economic History, vol. 45, no. 3, pp. 270-287, 2008. https://doi.org/10.1016/j.eeh.2007.11.001
  24. C. F. Tang and B. W. Tan, "The linkages among energy consumption, economic growth, relative price, foreign direct investment, and financial development in Malaysia," Quality & Quantity, vol. 48, no. 2, pp. 781-797, 2014. https://doi.org/10.1007/s11135-012-9802-4
  25. R. R. Kumar, "Nexus between financial and technology inclusion, remittances and trade openness vis-a-vis growth: a study of Nepal," The Economic Journal of Nepal, vol. 34, no. 1, pp. 13-30, 2011.
  26. K. Saidi, L. B. Hassen, and M. S. Hammami, "Econometric analysis of the relationship between ICT and economic growth in Tunisia," Journal of the Knowledge Economy, vol. 6, no. 4, pp. 1191-1206, 2015. https://doi.org/10.1007/s13132-014-0204-9
  27. R. R. Kumar, "Exploring the role of technology, tourism and financial development: an empirical study of Vietnam," Quality & Quantity, vol. 48, no. 5, pp. 2881-2898, 2014. https://doi.org/10.1007/s11135-013-9930-5
  28. P. Gao and A. Rafiq, "The transformation of the mobile telecommunications industry in Pakistan: a developing country perspective," Telecommunications Policy, vol. 33, no. 5-6, pp. 309-323, 2009. https://doi.org/10.1016/j.telpol.2009.03.001
  29. M. Nasir and F. U. Rehman, "Environmental Kuznets curve for carbon emissions in Pakistan: an empirical investigation," Energy Policy, vol. 39, no. 3, pp. 1857-1864, 2011. https://doi.org/10.1016/j.enpol.2011.01.025
  30. S. Johansen and K. S. Juselius, "Maximum likelihood estimation and inference on cointegration-with applications to the demand for money," Oxford Bulletin of Economics and Statistics, vol. 52, no. 2, pp. 169-210, 1990. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
  31. R. F. Engle and C. W. Granger, "Co-integration and error correction: representation, estimation, and testing," Econometrica, vol. 55, no. 2, pp. 251-276, 1987. https://doi.org/10.2307/1913236
  32. P. K. Narayan, "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, vol. 37, no. 17, pp. 1979-1990, 2005. https://doi.org/10.1080/00036840500278103
  33. J. W. Lee, "Empirical evidence of causality between information communications technology and economic growth in China, Japan and South Korea," in Proceedings of the 11th International Decision Sciences Institute and the 16th Asia-Pacific Decision Sciences Institute Joint Meeting, Taipei, Taiwan, 2011.
  34. M. Shahiduzzaman and K. Alam, "The long-run impact of information and communication technology on economic output: the case of Australia," Telecommunications Policy, vol. 38, no. 7, pp. 623-633, 2014. https://doi.org/10.1016/j.telpol.2014.02.003
  35. J. W. Lee and T. Brahmasrene, "ICT, CO2 emissions and economic growth: evidence from a panel of ASEAN," Global Economic Review, vol. 43, no. 2, pp. 93-109, 2014. https://doi.org/10.1080/1226508X.2014.917803
  36. K. M. Vu, "Information and communication technology (ICT) and Singapore's economic growth," Information Economics and Policy, vol. 25, no. 4, pp. 284-300, 2013. https://doi.org/10.1016/j.infoecopol.2013.08.002
  37. M. R. Ward and S. Zheng, "Mobile telecommunications service and economic growth: evidence from China," Telecommunications Policy, vol. 40, no. 2-3, pp. 89-101, 2016. https://doi.org/10.1016/j.telpol.2015.06.005
  38. S. Farhani and I. Ozturk, "Causal relationship between CO2 emissions, real GDP, energy consumption, financial development, trade openness, and urbanization in Tunisia," Environmental Science and Pollution Research, vol. 22, no. 20, pp. 15663-15676, 2015. https://doi.org/10.1007/s11356-015-4767-1
  39. S. Ghosh and K. Kanjilal, "Long-term equilibrium relationship between urbanization, energy consumption and economic activity: empirical evidence from India," Energy, vol. 66, pp. 324-331, 2014. https://doi.org/10.1016/j.energy.2013.12.052
  40. Y. Zhao and S. Wang, "The relationship between urbanization, economic growth and energy consumption in China: an econometric perspective analysis," Sustainability, vol. 7, no. 5, pp. 5609-5627, 2015. https://doi.org/10.3390/su7055609
  41. P. L. Lam and A. Shiu, "Economic growth, telecommunications development and productivity growth of the telecommunications sector: evidence around the world," Telecommunications Policy, vol. 34, no. 4, pp. 185-199, 2010. https://doi.org/10.1016/j.telpol.2009.12.001
  42. M. Haghshenas, H. Kasimin, and M. Berma, "Information and communication technology (ICT) and economic growth in Iran: causality analysis," Jurnal Ekonomi Malaysiaxi, vol. 47, no. 2, pp. 55-68, 2013.
  43. A. Yousefi, "A panel granger causality test of investment in ICT capital and economic growth: evidence from developed and developing countries," Economics World, vol. 3, no. 5-6, pp. 109-127, 2015.
  44. Z. Latif, W. Lei, Z. H. Pathan, S. Hussain, and K. Khan, "Factors affecting diffusion and adoption of information and communication technology among rural users in Khyber Pakhtunkhwa Province, Pakistan," International Journal of Information Technology and Management, vol. 17, no. 4, pp. 349-370, 2018. https://doi.org/10.1504/ijitm.2018.095061
  45. M. Shahbaz, I. U. Rehman, R. Sbia, and H. Hamdi, "The role of information communication technology and economic growth in recent electricity demand: fresh evidence from combine cointegration approach in UAE," Journal of the Knowledge Economy, vol. 7, no. 3, pp. 797-818, 2016. https://doi.org/10.1007/s13132-015-0250-y
  46. S. Asadi, M. Nilashi, M. Safaei, R. Abdullah, F. Saeed, E. Yadegaridehkordi, and S. Samad, "Investigating factors influencing decision-makers' intention to adopt Green IT in Malaysian manufacturing industry," Resources, Conservation and Recycling, vol. 148, pp. 36-54, 2019. https://doi.org/10.1016/j.resconrec.2019.04.028