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The role of ICT diffusion in sustainable human development: an empirical analysis from SAARC economies

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Abstract

This study intends to examine the impact of ICT diffusion, globalization, financial development, government effectiveness, and economic growth on sustainable human development (SHD) (i.e., the development of human capital adjusted against the human ecological footprint) using 2005–2020 panel data of SAARC economies. The methodology involves econometric techniques robust to cross-sectional dependence (CSD), such as Pesaran CSD tests; second-generation unit root tests; Pedroni, Kao, and Westerlund cointegration tests; FMOLS, DCCE-MG, and Driscoll-Kraay (DK) regressions; and DH causality tests. The findings of the cointegration tests demonstrate that the variables are cointegrated and have a long-run equilibrium relationship. The results from the DCCE-MG and DK regressions indicate that ICT diffusion has a significant favorable impact on SHD. Similarly, globalization and economic growth also have a significant positive impact on SHD. On the other hand, the impact of government effectiveness and financial development was found to be insignificant. In addition, the DH causality test results show the presence of a unidirectional causality running from ICT diffusion to SHD and globalization to SHD. A bidirectional causal link is detected between economic growth and SHD. Therefore, the study concludes that in order to resolve the undesirable consequences of environmental degradation on human development in the globalized era, it is essential for SAARC economies to tackle the challenges of adequate ICT infrastructure: particularly, access and affordability. By eliminating these significant barriers to ICT access, CO2 emissions can be reduced, and human development can be sustained simultaneously.

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The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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All authors contributed to the study conception and design. Material preparation, data collection, analysis, and writing original draft were performed by Anushka Verma. The final draft of the manuscript was reviewed and edited by A.K. Giri and Byomakesh Debata. All authors read and approved the final manuscript.

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Correspondence to Anushka Verma.

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Appendix

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Table 11 Summary of PCA

11

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Verma, A., Giri, A.K. & Debata, B. The role of ICT diffusion in sustainable human development: an empirical analysis from SAARC economies. Environ Sci Pollut Res 30, 14518–14532 (2023). https://doi.org/10.1007/s11356-022-23174-7

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  • DOI: https://doi.org/10.1007/s11356-022-23174-7

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