Procedia of Social Sciences and Humanities
Vol. 1 (2021): Proceedings of the 2nd International Conference On Intelectuals Global Responsibility (ICIGR 2020)
Articles

ICT and Economic Growth Nexus: Case of Central Asian Countries

PDF
  • Tursun Shodiev,
  • Bakhodir Turayey,
  • Kamoliddin Shodiyev
Tursun Shodiev
Westminster International University
Bakhodir Turayey
Samarkand State University
Kamoliddin Shodiyev
Samarkand State University
DOI: https://doi.org/10.21070/pssh.v1i.37
Published January 30, 2021
Keywords
  • ICT,
  • Ecoomic Growth Nexus,
  • Central Asian Countries
How to Cite
Shodiev, T., Turayey, B., & Shodiyev, K. (2021). ICT and Economic Growth Nexus: Case of Central Asian Countries. Procedia of Social Sciences and Humanities, 1, 155-167. https://doi.org/10.21070/pssh.v1i.37

Copyright (c) 2021 Tursun Shodiev, Bakhodir Turayey, Kamoliddin Shodiyev

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Crossref
Scopus
Google Scholar
Europe PMC

Abstract

The Government of Uzbekistan declared the year of 2020 as “The Year of Science, Education and Development of the Digital Economy” and is implementing the State Program, aiming at to liberalize the economy, improve market related incentives, encourage private enterprises, to reduce the role of the public sector by introducing ICT and Internet, developing digital economy. In order to understand the causal relationship between ICT investment and economic growth researchers have exert many effort in the world. The results are different: in developed countries the impact of ICT on economic growth is more powerful than in developing countries. This paper aims at finding and measuring causality between Economic growth and ICT development in emerging economies of Central Asian Countries by using panel data over  the period of  19 years  from 2000 – 2018. The research findings revealed that inflation, trade openness, final consumption expenditure and unemployment impact significantly on GDP per capita in Central Asian countries.  The econometric analysis showed  that ICT affects to GDP per capita positively and significantly: one percent increase in ICT contributes to GDP per capita 0.1669 percent (fixed broadband subscriptions) and 0.2218 percent (internet usage).Thus we concluded that information and communication technology together with economic indicators are key part of economic development in Central Asian countries. Reduction of inflation and unemployment allow expanding businesses, to create new job places in the digital economy.

PDF

References

  1. Chen, Y.; Gong, X.; Chu, C.C.; Cao, Y., 2018 (b). Access to the Internet and Access to Finance: Theory and Evidence. Available from: https://www.mdpi.com/2071-1050/10/7/2534 [Accessed 11 February 2020].
  2. Choi, C.; Yi, M.H., 2009. The effect of the Internet on economic growth: Evidence from cross-country. Available from: https://www.sciencedirect.com/science/article/abs/pii/S0165176509001773?via%3 [Accessed 19 January 2020].
  3. Crandall, R.W.; Singer, H.J., 2010. The Economic Impact of Broadband Investment; Broadband for America: Available from: http://Internetinnovation.org/files/special-reports/Economic_Impact_of_Broadband_Investment_Broadband_for_America_.pdf [Accessed 22 January 2020].
  4. Czernich, N.; Falck, O.; Kretschmer, T.; Woessmann, L., 2009. Broadband Infrastructure and Economic Growth. Available from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1516232 [Accessed 13 January 2020].
  5. Datta, A.; Agarwal, S., 2004. Telecommunications and economic growth: A panel data approach. Available from: https://www.tandfonline.com/doi/abs/10.1080/0003684042000218552. [Accessed 13 January 2020].
  6. Dimelis, S.P.; Papaioannou, S.K., 2010. FDI and ICT effects on productivity growth: A comparative analysis of developing and developed countries. Available from: https://link.springer.com/article/10.1057%2Fejdr.2009.45 [Accessed 12 January 2020].
  7. Farhadi, M.; Ismail, R.; Fooladi, M., 2012. Information and communication technology use and economic growth. Available from: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0048903 [Accessed 18 February 2020].
  8. Haftu, G.G., 2018. Information communications technology and economic growth in Sub-Saharan Africa: A panel data approach. Available from: https://www.sciencedirect.com/science/article/abs/pii/S0308596117303737?via%3 [Accessed 28 February 2020].
  9. Madden, G.; Savage, S.J., 2008. CEE telecommunications investment and economic growth. Available from: https://www.sciencedirect.com/science/article/pii/S0167624597000206?via%3 [Accessed 11 January 2020].
  10. Meijers, H., 2014 (a). Does the Internet generate economic growth, international trade, or both? Int. Econ. Econ. Policy 2014, 11, 137–163.
  11. Meijers, H., 2014 (b). Does the Internet generate economic growth, international trade, or both? Int. Econ. Econ. Policy 2014, 11, 175–186.
  12. Najarzadeh, R.; Rahimzadeh, F.; Reed, M., 2014. Does the Internet increase labor productivity? Available from: https://www.sciencedirect.com/science/article/pii/S0161893814000908?via%3 [Accessed 19 January 2020].
  13. Nasab, E.H.; Aghaei, M., 2009. The effect of ICT on economic growth: Further evidence. 5, 46–56.
  14. Niebel, T., 2018. ICT and economic growth–Comparing developing, emerging and developed countries. Available from: https://www.sciencedirect.com/science/article/abs/pii/S0305750X17303868?via%3 [Accessed 28 February 2020].
  15. Pradhan, R.P.; Mallik, G.; Bagchi, T.P., 2018. Information communication technology (ICT) infrastructure and economic growth: A causality evinced by cross-country panel data. Available from: https://www.sciencedirect.com/science/article/pii/S0970389618300260?via%3 [Accessed 11 February 2020].
  16. Шавкат Мирзиёев. Указ Президента Республики Узбекистан “О Государственной программе по реализации Стратегии действий по пяти приоритетным направлениям развития Республики Узбекистан в 2017 — 2021 годах в «Год развития науки, просвещения и цифровой экономики” Газета “Народное слово” от 7 февраля 2020
  17. Shiu, A.; Lam, P.L., 2008. Causal Relationship between Telecommunications and Economic Growth: A Study of 105 Countries. Available from: http://www.imaginar.org/taller/its2008/192.pdf. Accessed 13 January 2020].
  18. Stephanie, B., 2015. Variance Inflation Factor - Statistics How To. Statistics How To. Available from: https://www.statisticshowto.com/variance-inflation-factor/ [Accessed 8 March 2020].
  19. Stephanie, B., 2016. Wald Test: Definition, Examples, Running the Test Available from: https://www.statisticshowto.com/wald-test/ [Accessed 4 March 2020].
  20. World Bank., 2002. Information and Communication Technologies: A World Bank Group Strategy. Available from: http://documents.worldbank.org/curated/en/421471468325303463/Information-and-communication-technologies-a-World-Bank-Group-strategy [Accessed 11 February 2020].
  21. World Economic Forum.,2013. The Global Information Technology Report 2013, Digitization for Economic Growth and Job Creation. Available from: http://www3.weforum.org/docs/WEF_GITR_Report_2013.pdf [accessed on 10 July 2018].
  22. Yousefi, A., 2011. The Impact of Information and Communication Technology on Economic Growth: Evidence from Developed and Developing Countries. Available from: https://www.tandfonline.com/doi/abs/10.1080/10438599.2010.544470 [Accessed 18 February 2020].