| Journal of Social and Policy Sciences |
J-SAPS |
Considering the growing importance of technologies relevant to information and communication and the accelerated innovation in them from last two decades, the present study analyzes the association between information and communication technology (ICT) and economic growth. The study also aims to compute threshold level(s) for different economic indicators such as foreign direct investment, financial development, trade openness, governance indicators, and human capital after which a drastic change in the trend of information and communication technology (ICT) is observed and it penetrates more effectively in the economy. Empirical estimation is categorized into two types of analysis: 1) linear regression analysis based on pooled regression analysis, time-specific fixed-effect model and time-specific random effect model and 2) non-linear regression analysis based on non-dynamic panel threshold analysis. Linear regression employs an unbalanced panel of 121 countries for the period 1990 – 2016 whereas, non-linear regression employs a balanced panel for the period 2002 to 2016. Non-linear regression analysis further interprets the results by rearranging these 121 countries into the low-income group and high-income group countries. Results of linear regression analysis confirm the presence of a positive association between ICT and economic growth whereas the results of non-linear regression give evidence of certain threshold level(s) for FDI, financial development, trade openness, governance indicators and human capital that once achieved make(s) ICT to affect economic growth significantly.
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