Impact of information and communication technology on economic growth for upper-middle income economies

Abstract

In this paper, I analyze the impact of information and communication technology (ICT) on the economic growth of selected upper-middle income countries for a period of 20 years (1997-2016). Using panel growth models, I investigate how core ICT infrastructure indicators affect the economic growth, which in my study is proxied by GDP per capita. Several macroeconomic control variables are included in the model. In order to avoid reverse causality and endogeneity issues, lagged variables are selected for the model. My key findings suggest that ICT infrastructure along with other macroeconomic factors has positive and significant effect on economic growth of the selected countries. Particular ICT indicators have stronger impact on economic growth compared to others.