Please use this identifier to cite or link to this item: 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
Pages: 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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