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https://doi.org/10.21256/zhaw-21991| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | Role of ICT investment and diffusion in the economic growth : a threshold approach for the empirical evidence from Pakistan |
| Authors: | Rahman, Habib Ur Ali, Ghulam Zaman, Umer Pugnetti, Carlo |
| et. al: | No |
| DOI: | 10.3390/ijfs9010014 10.21256/zhaw-21991 |
| Published in: | International Journal of Financial Studies |
| Volume(Issue): | 9 |
| Issue: | 1 |
| Page(s): | 14 |
| Issue Date: | 2021 |
| Publisher / Ed. Institution: | MDPI |
| ISSN: | 2227-7072 |
| Language: | English |
| Subjects: | ICT; Technological innovation; Economic growth; Threshold level |
| Subject (DDC): | 004: Computer science 338: Production |
| Abstract: | This study investigates the role of Information and Communication Technologies (ICT) investment and diffusion on Pakistan’s economic growth by proposing the threshold level of ICT investment. At our proposed level, the ICT imports significantly enhance the intermediate inputs to capital goods, ultimately enhancing economic growth. For this empirical investigation, we use the maximum available data on technological innovation and investment, ranging from 2003 to 2018. Incorporating the structural breaks, the results of regression analysis reveal that Pakistan’s economic growth is unaffected by ICT development. However, we observe the mixed shreds of evidence on the ICT investment. Following existing literature, we use ICT goods exports and imports as a proxy for ICT investment. Interestingly, the economic growth of Pakistan is again unaffected by the ICT goods exports. However, we observe that a one percent increase in ICT goods imports enhances economic growth by 1.73 percent. Then, we extend this analysis to the threshold approach, which reveals that ICT imports affect the overall economic growth when the ICT goods imports reach the level of 4.13 percent of the total imports. At this threshold, the ICT goods import significantly enhances the intermediate input to the capital goods, leading to higher economic growth. Therefore, the policymakers should ensure that the ICT goods import must be greater than the 4.13 percent of Pakistani imports. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/21991 |
| Fulltext version: | Published version |
| License (according to publishing contract): | CC BY 4.0: Attribution 4.0 International |
| Departement: | School of Management and Law |
| Organisational Unit: | Institute for Risk & Insurance (IRI) |
| Appears in collections: | Publikationen School of Management and Law |
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| 2021_Rahman-etal_ICT-investment-and-diffusion-economic-growth.pdf | 929.57 kB | Adobe PDF |  View/Open |
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Rahman, H. U., Ali, G., Zaman, U., & Pugnetti, C. (2021). Role of ICT investment and diffusion in the economic growth : a threshold approach for the empirical evidence from Pakistan. International Journal of Financial Studies, 9(1), 14. https://doi.org/10.3390/ijfs9010014
Rahman, H.U. et al. (2021) ‘Role of ICT investment and diffusion in the economic growth : a threshold approach for the empirical evidence from Pakistan’, International Journal of Financial Studies, 9(1), p. 14. Available at: https://doi.org/10.3390/ijfs9010014.
H. U. Rahman, G. Ali, U. Zaman, and C. Pugnetti, “Role of ICT investment and diffusion in the economic growth : a threshold approach for the empirical evidence from Pakistan,” International Journal of Financial Studies, vol. 9, no. 1, p. 14, 2021, doi: 10.3390/ijfs9010014.
RAHMAN, Habib Ur, Ghulam ALI, Umer ZAMAN und Carlo PUGNETTI, 2021. Role of ICT investment and diffusion in the economic growth : a threshold approach for the empirical evidence from Pakistan. International Journal of Financial Studies. 2021. Bd. 9, Nr. 1, S. 14. DOI 10.3390/ijfs9010014
Rahman, Habib Ur, Ghulam Ali, Umer Zaman, and Carlo Pugnetti. 2021. “Role of ICT Investment and Diffusion in the Economic Growth : A Threshold Approach for the Empirical Evidence from Pakistan.” International Journal of Financial Studies 9 (1): 14. https://doi.org/10.3390/ijfs9010014.
Rahman, Habib Ur, et al. “Role of ICT Investment and Diffusion in the Economic Growth : A Threshold Approach for the Empirical Evidence from Pakistan.” International Journal of Financial Studies, vol. 9, no. 1, 2021, p. 14, https://doi.org/10.3390/ijfs9010014.
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