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ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis

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Abstract

This study examines the ICT diffusion-industrialisation-economic growth nexus for 171 countries over the period 2000–2018. The panel data was divided into four income groups. For the analysis, the newly developed panel VAR in generalized method of moment (GMM) estimation approach was applied. Our findings suggest a long-run equilibrium relationship between the three variables. While a strong evidence of two-way causality among the three variables in the entire sample and four income groups were reported. The panel VAR results suggest that at global level, ICT diffusion has negative and positive impact on industrialisation and growth, respectively, while industrialisation has negative impact on growth. Thus, there is need to promote realistic policies that will enhance ICT diffusion and industrialisation concurrently in order to promote growth globally. An increase and improvement in ICT diffusion will encourage, facilitate and accelerate the process of industrialisation and aggregate output to move in similar direction globally.

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Notes

  1. This happens from learning by doing.

  2. The latest STATA pvar programs used for this study was made available by Abrigo and Love (2016) and it has been used by other researchers.

  3. Interested readers are referred to Abrigo and Love (2016) for more details. We refer readers to this paper to save space.

  4. See Table 1 for details on the classifications. The standard for grouping based on GNI per capita may have changed over some years, but very few countries have moved from one group to the other.

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Saba, C.S., Ngepah, N. ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis. J Knowl Econ 13, 2030–2069 (2022). https://doi.org/10.1007/s13132-021-00795-w

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