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http://dx.doi.org/10.13106/jafeb.2022.vol9.no2.0295

The Dynamic Relationship Between FDI, ICT, Trade Openness, and Economic Growth: Evidence from BRICS Countries  

SOOMRO, Ahmed Nawaz (School of Management and Economics (MBA Education Center), North China University of Water Resources and Electric Power)
KUMAR, Jai (School of International & Public Affairs, Jilin University)
KUMARI, Joti (Business School, Sichuan University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.2, 2022 , pp. 295-303 More about this Journal
Abstract
Information and communication technology (ICT) is one of the primary zones that stimulates economic development in today's globalized world. It promotes technological developments in worldwide communication and manufacturing systems, as well as economic growth and development. Many economic activities, such as international trade and foreign direct investment, rely heavily on contemporary information and communications technologies (FDI). The goal of this study is to look at the dynamic relationship between FDI, ICT, trade openness, and economic growth in the context of BRICS countries from 2000 to 2018, with Gross Domestic Product as the dependent variable and Telephone subscriptions, Mobile subscriptions, Broadband subscriptions, Internet subscribers, Secure internet servers, Trade, and Foreign direct investment as the independent variables.Two variables are used as proxies to manage the macroeconomic environment, while five variables are used as proxies for ICT infrastructures. The outcomes of this study are analyzed using Generalized Methods of Movements (GMM). According to this study, ICT has a positive impact on the economic growth of a few countries. Trade openness and foreign direct investment, on the other hand, have a negative impact on economic growth. As growing countries, the BRICS must participate in economic reform and liberalization measures. This report suggests policy proposals for improving ICT standards, focusing especially on economic growth, trade openness, and increasing foreign investment in the BRICS countries.
Keywords
Information Communication Technology; Foreign Direct Investment; Economic Growth; GMM Analysis;
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