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.
Similar content being viewed by others
Data availability
The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.
References
Adams S, Akobeng E (2021) ICT, governance and inequality in Africa. Telecomm Policy 45:102198. https://doi.org/10.1016/j.telpol.2021.102198
Aghaei M, Nasab EH (2009) The effect of ICT on economic growth: further evidence. Int Bull Bus Adm 5:46–56
Ahmed Z, Le HP (2021) Linking information communication technology, trade globalization index, and CO2 emissions: evidence from advanced panel techniques. Environ Sci Pollut Res 28:8770–8781. https://doi.org/10.1007/s11356-020-11205-0
Albiman MM, Sulong Z (2017) The linear and non-linear impacts of ICT on economic growth, of disaggregate income groups within SSA region. Telecomm Policy 41:555–572. https://doi.org/10.1016/j.telpol.2017.07.007
Alimi AS, Adediran IA (2020) ICT diffusion and the finance – growth nexus : a panel analysis on ECOWAS countries. Futur Bus J. https://doi.org/10.1186/s43093-020-00024-x
Alshubiri F, Jamil SA, Elheddad M (2019) The impact of ICT on financial development: empirical evidence from the Gulf Cooperation Council countries. Int J Eng Bus Manag 11:1–14. https://doi.org/10.1177/1847979019870670
Appiah-Otoo I, Song N (2021) The impact of ICT on economic growth-comparing rich and poor countries. Telecomm Policy 45:102082. https://doi.org/10.1016/j.telpol.2020.102082
Arvin MB, Pradhan RP, Nair M (2021) Uncovering interlinks among ICT connectivity and penetration, trade openness, foreign direct investment, and economic growth: the case of the G-20 countries. Telemat Informatics 60:101567. https://doi.org/10.1016/j.tele.2021.101567
Asongu SA (2021) The effects of mobile phone technology, knowledge creation and diffusion on inclusive human development in Sub-Saharan Africa. J Knowl Econ 12:1367–1398. https://doi.org/10.1007/s13132-020-00668-8
Asongu SA, Odhiambo NM (2019) How enhancing information and communication technology has affected inequality in Africa for sustainable development: an empirical investigation. Sustain Dev 27:647–656. https://doi.org/10.1002/sd.1929
Asongu SA, Le Roux S, Biekpe N (2017) Environmental degradation, ICT and inclusive development in Sub-Saharan Africa. Energy Policy 111:353–361. https://doi.org/10.1016/j.enpol.2017.09.049
Avom D, Nkengfack H, Fotio HK, Totouom A (2020) ICT and environmental quality in Sub-Saharan Africa: effects and transmission channels. Technol Forecast Soc Change 155:120028. https://doi.org/10.1016/j.techfore.2020.120028
Azam A, Rafiq M, Shafique M et al (2021) Human development index, ICT, and Renewable energy-growth nexus for sustainable development: a novel PVAR analysis. Front Energy Res 9:1–11. https://doi.org/10.3389/fenrg.2021.760758
Baltagi BH, Feng Q, Kao C (2012) A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model. J Econom 170:164–177. https://doi.org/10.1016/j.jeconom.2012.04.004
Ben Lahouel B, Taleb L, Ben Zaied Y, Managi S (2021) Does ICT change the relationship between total factor productivity and CO2 emissions? Evidence based on a nonlinear model. Energy Econ 101. https://doi.org/10.1016/j.eneco.2021.105406
Bhujabal P, Sethi N, Padhan PC (2021) ICT, foreign direct investment and environmental pollution in major Asia Pacific countries. Environ Sci Pollut Res 28:42649–42669. https://doi.org/10.1007/s11356-021-13619-w
Breusch TS, Pagan AR (1980) The Lagrange Multiplier Test and its applications to model specification in econometrics. Rev Econ Stud 47:239–253. https://doi.org/10.2307/2297111
Cheng CY, Chien MS, Lee CC (2021) ICT diffusion, financial development, and economic growth: an international cross-country analysis. Econ Model 94:662–671. https://doi.org/10.1016/j.econmod.2020.02.008
Chib A, Lwin MO, Ang J et al (2008) Midwives and mobiles: using ICTs to improve healthcare in Aceh Besar, Indonesia. Asian J Commun 18:348–364. https://doi.org/10.1080/01292980802344182
Chien MS, Cheng CY, Kurniawati MA (2020) The non-linear relationship between ICT diffusion and financial development. Telecomm Policy 44:102023. https://doi.org/10.1016/j.telpol.2020.102023
Chien F, Anwar A, Hsu CC et al (2021) The role of information and communication technology in encountering environmental degradation: proposing an SDG framework for the BRICS countries. Technol Soc 65:101587. https://doi.org/10.1016/j.techsoc.2021.101587
Chudik A, Pesaran MH (2015) Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors. J Econom 188:393–420. https://doi.org/10.1016/j.jeconom.2015.03.007
Donou-Adonsou F (2019) Technology, education, and economic growth in Sub-Saharan Africa. Telecomm Policy 43:353–360. https://doi.org/10.1016/j.telpol.2018.08.005
Driscoll JC, Kraay AC (1998) Consistent covariance matrix estimation with spatially dependent panel data. Rev Econ Stat 80:549–560. https://doi.org/10.1162/003465398557825
Dumitrescu E, Hurlin C (2012) Testing for Granger non-causality in heterogeneous panels ☆. Econ Model 29:1450–1460. https://doi.org/10.1016/j.econmod.2012.02.014
Dutta UP, Gupta H, Sengupta PP (2019) ICT and health outcome nexus in 30 selected Asian countries: fresh evidence from panel data analysis. Technol Soc 59:101184. https://doi.org/10.1016/j.techsoc.2019.101184
Esquivias MA, Sugiharti L, Rohmawati H, et al (2022) Nexus between technological innovation, renewable energy, and human capital on the environmental sustainability in emerging Asian economies: a panel quantile regression approach Energies 15. https://doi.org/10.3390/en15072451
Farooqi ZU, Makhdum MSA, Yaseen MR (2020) Impact of information and communication technology (ICT) investment on different components of human development in developing countries. Int Rev Manag Bus Res 9:108–129. https://doi.org/10.30543/9-4(2020)-11
Haseeb A, Xia E, Saud S et al (2019) Does information and communication technologies improve environmental quality in the era of globalization? An empirical analysis. Environ Sci Pollut Res 26:8594–8608. https://doi.org/10.1007/s11356-019-04296-x
Hickel J (2020) The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene. Ecol Econ 167:106331. https://doi.org/10.1016/j.ecolecon.2019.05.011
Hughes BB, Bohl D, Irfan M et al (2017) ICT/Cyber benefits and costs: reconciling competing perspectives on the current and future balance. Technol Forecast Soc Change 115:117–130. https://doi.org/10.1016/j.techfore.2016.09.027
Hwang WS, Shin J (2017) ICT-specific technological change and economic growth in Korea. Telecomm Policy 41:282–294. https://doi.org/10.1016/j.telpol.2016.12.006
Kaiser HF (1974) An index of factorial simplicity. Psychometrika 39:31–36. https://doi.org/10.1007/BF02291575
Kao C (1999) Spurious regression and residual-based tests for cointegration in panel data. J Econom 90:1–44. https://doi.org/10.1016/S0304-4076(98)00023-2
Khan FN, Sana A, Arif U (2020) Information and communication technology (ICT) and environmental sustainability: a panel data analysis. Environ Sci Pollut Res 27:36718–36731. https://doi.org/10.1007/s11356-020-09704-1
Kurniawati MA (2020) Analysis of the impact of information communication technology on economic growth : empirical evidence from Asian countries. https://doi.org/10.1108/JABES-07-2020-0082
Lam PL, Shiu A (2010) Economic growth, telecommunications development and productivity growth of the telecommunications sector: evidence around the world. Telecomm Policy 34:185–199. https://doi.org/10.1016/j.telpol.2009.12.001
Latif Z, Xin W, Danish K et al (2017) Ict and sustainable development in south asian countries. Hum Syst Manag 36:353–362. https://doi.org/10.3233/HSM-17166
Lee MH, Liu PY, Lio MC (2016) The impact of the diffusion of information and communication technology on health: a cross-country study. Appl Res Qual Life 11:471–491. https://doi.org/10.1007/s11482-014-9376-5
Lee CC, Lee CC, Ning SL (2017) Dynamic relationship of oil price shocks and country risks. Energy Econ 66:571–581. https://doi.org/10.1016/j.eneco.2017.01.028
Lenka SK, Barik R (2018) Has expansion of mobile phone and Internet use spurred financial inclusion in the SAARC countries?. Financ Innov 4. https://doi.org/10.1186/s40854-018-0089-x
Liu X, Latif Z, Danish et al (2021) The corruption-emissions nexus: do information and communication technologies make a difference? Util Policy 72:101244. https://doi.org/10.1016/j.jup.2021.101244
May G, Stahl B, Taisch M, Kiritsis D (2017) Energy management in manufacturing: from literature review to a conceptual framework. J Clean Prod 167:1464–1489. https://doi.org/10.1016/j.jclepro.2016.10.191
Mohsin M, Zhou P, Iqbal N, Shah SAA (2018) Assessing oil supply security of South Asia. Energy 155:438–447. https://doi.org/10.1016/j.energy.2018.04.116
Moyer JD, Hughes BB (2012) ICTs: do they contribute to increased carbon emissions? Technol Forecast Soc Change 79:919–931. https://doi.org/10.1016/j.techfore.2011.12.005
Mukherjee S, Chakraborty D (2010) Is there any relationship between economic growth and human development? Evidence from Indian States. MPRA Paper 22997, University Library of Munich, Germany. Available at SSRN: https://ssrn.com/abstract=1624465
Nchofoung TN, Asongu SA (2022) ICT for sustainable development: global comparative evidence of globalisation thresholds. Telecomm Policy 46:102296. https://doi.org/10.1016/j.telpol.2021.102296
Njangang H, Beleck A, Tadadjeu S, Kamguia B (2021) Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis. Telecomm Policy 102246. https://doi.org/10.1016/j.telpol.2021.102246
Noor S, Hoque M (2021) Access to mobile phones and women’s socio-economic empowerment in rural areas of Bangladesh: understanding gender relation transformation. Indones J Soc Res 3:1–16. https://doi.org/10.30997/ijsr.v2i3.105
Ofori IK, Armah MK, Taale F, Ofori PE (2021) Addressing the severity and intensity of poverty in Sub-Saharan Africa: how relevant is the ICT and financial development pathway? Heliyon 7:e08156. https://doi.org/10.1016/j.heliyon.2021.e08156
Omri A, Belaïd F (2021) Does renewable energy modulate the negative effect of environmental issues on the socio-economic welfare? J Environ Manage 278:111483. https://doi.org/10.1016/j.jenvman.2020.111483
Ozcan B, Apergis N (2018) The impact of Internet use on air pollution: evidence from emerging countries. Environ Sci Pollut Res 25:4174–4189. https://doi.org/10.1007/s11356-017-0825-1
Park Y, Meng F, Baloch MA (2018) The effect of ICT, financial development, growth, and trade openness on CO(2) emissions: an empirical analysis. Environ Sci Pollut Res Int 25:30708–30719. https://doi.org/10.1007/s11356-018-3108-6
Pedroni P (2004) Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to the ppp hypothesis. Econom Theory 20:597–625. https://doi.org/10.1017/S0266466604203073
Pérez-Castro MÁ, Mohamed-Maslouhi M, Montero-Alonso MÁ (2021) The digital divide and its impact on the development of Mediterranean countries. Technol Soc 64. https://doi.org/10.1016/j.techsoc.2020.101452
Pesaran MH (2006) Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica 74:967–1012
Pesaran MH (2007) A simple panel unit root test in the presence of cross-section dependence. J Appl Econom 22:265–312
Pesaran MH, Smith R (1995) Estimating long-run relationships from dynamic heterogeneous panels. J Econom 68:79–113. https://doi.org/10.1016/0304-4076(94)01644-F
Pesaran MH, Shin Y, Smith RP (1999) Pooled mean group estimation of dynamic heterogeneous panels. J Am Stat Assoc 94:621–634. https://doi.org/10.1080/01621459.1999.10474156
Pesaran MH (2004) General diagnostic tests for cross-section dependence in panels. CESifo working paper series no. 1229; IZA discussion paper no. 1240. Available at SSRN: https://ssrn.com/abstract=572504
Richmond K, Triplett RE (2018) ICT and income inequality: a cross-national perspective. Int Rev Appl Econ 32:195–214. https://doi.org/10.1080/02692171.2017.1338677
Tchamyou VS, Erreygers G, Cassimon D (2019) Inequality, ICT and financial access in Africa. Technol Forecast Soc Change 139:169–184. https://doi.org/10.1016/j.techfore.2018.11.004
Toader E, Firtescu BN, Roman A, Anton SG (2018) Impact of information and communication technology infrastructure on economic growth: an empirical assessment for the EU countries. Sustain 10:1–22. https://doi.org/10.3390/su10103750
United Nations (2016) Transforming our world: the 2030 Agenda For Sustainable Development, A/RES/70/1. United Nations, General Assembly, New York. Available at: https://sustainabledevelopment.un.org/content/documents/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf
Usman O, Alola AA, Sarkodie SA (2020) Assessment of the role of renewable energy consumption and trade policy on environmental degradation using innovation accounting: Evidence from the US. Renew Energy 150:266–277. https://doi.org/10.1016/j.renene.2019.12.151
Verma A, Giri AK (2020) ICT diffusion, financial development, and economic growth: Panel evidence from SAARC countries. J Public Aff 2020:1–11. https://doi.org/10.1002/pa.2557
Wang J, Xu Y (2021) Internet usage, human capital and CO2 emissions: a global perspective. Sustain 13. https://doi.org/10.3390/su13158268
Westerlund J (2007) Testing for error correction in panel data. Oxf Bull Econ Stat 69:709–748. https://doi.org/10.1111/j.1468-0084.2007.00477.x
Yilmaz R, Üniversitesi KN, Koyuncu JY, Üniversitesi BŞE (2018) The contribution of ICT to poverty reduction: a panel data evidence. Soc Sci Res J 7:63–75
Zhang J, Danish (2019) The dynamic linkage between information and communication technology, human development index, and economic growth: evidence from Asian economies. Environ Sci Pollut Res 26:26982–26990. https://doi.org/10.1007/s11356-019-05926-0
Author information
Authors and Affiliations
Contributions
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.
Corresponding author
Ethics declarations
Ethical approval
NA.
Consent to participate
As corresponding author, I confirm that the manuscript has been read and approved for submission by all the named authors.
Consent to publish
We give our consent for the article to be published in ESPR. We declare that this manuscript is original, has not been published before and is not currently being considered for publication to a preprint server prior to submission on ESPR.
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Arshian Sharif
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendix
Rights and permissions
Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
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
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-022-23174-7