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Year 2023, Volume: 7 Issue: 2, 131 - 150, 18.10.2023

Tamerlan Mashadihasanli Haluk Zülfikar

Abstract

References

  • Ahmad, M., & Satrovic, E. (2023a). How does monetary policy moderate the influence of economic complexity and technological innovation on environmental sustainability? The role of green central banking. International Journal of Finance & Economics.
  • Ahmad, M., & Satrovic, E. (2023b). Role of economic complexity and government intervention in environmental sustainability: Is decentralization critical?. Journal of Cleaner Production, 418, 138000.
  • Ahmad, M., & Satrovic, E. (2023c). How do fiscal policy, technological innovation, and economic openness expedite environmental sustainability?. Gondwana Research, 124, 143-164.
  • Alper, F. Ö. (2017). Bilgi ve iletişim teknolojilerinin ekonomik büyüme ve işsizlik üzerine etkisi: Seçilmiş AB ülkeleri ve Türkiye örneği. Yasama Dergisi, (36), 45-65.
  • Appiah-Otoo, I., & Song, N. (2021). The impact of ICT on economic growth-Comparing rich and poor countries. Telecommunications Policy, 45(2), 102082.
  • Artan, S., Hayaloğlu, P., & Baltacı, N. (2014). Bilgi ve iletişim teknolojilerindeki gelişmelerin iktisadi büyüme üzerindeki etkisi: Geçiş ekonomileri örneği. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 28(1), 199-214.
  • Baldemir, E. and Keskiner, A. (2004). Devalüasyon, para, reel gelir devalüasyon, para, reel gelir değişkenlerinin dış ticaret üzerine etkisinin panel data yöntemiyle Türkiye için incelenmesi. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 6(4), 44-59.
  • Brodny, J., & Tutak, M. (2022). Analyzing the level of digitalization among the enterprises of the European Union member states and their impact on economic growth. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 70.
  • Cheng, C. Y., Chien, M. S., & Lee, C. C. (2021). ICT diffusion, financial development, and economic growth: An international cross-country analysis. Economic modelling, 94, 662-671.
  • Colecchia, A., & Schreyer, P. (2002). ICT investment and economic growth in the 1990s: is the United States a unique case?: a comparative study of nine OECD countries. Review of Economic Dynamics, 5(2), 408-442.
  • Dağdelen, İ. (2002). Bilgi ve İletişim Teknolojileri Ekonomisi: Önemi, Politikaları ve Büyüme Katkıları”, Yayımlanmamış Yüksek Lisans Tezi. Gazi Üniversitesi Sosyal Bilimler Enstitüsü.
  • DAPradhan, R. P., Arvin, M. B., Nair, M. S., Hall, J. H., & Bennett, S. E. (2021). Sustainable economic development in India: The dynamics between financial inclusion, ICT development, and economic growth. Technological Forecasting and Social Change, 169, 120758.
  • Das, A., Chowdhury, M., & Seaborn, S. (2018). ICT diffusion, financial development, and economic growth: new evidence from low and lower middle-income countries. Journal of the Knowledge Economy, 9, 928-947.
  • Datta, A., & Agarwal, S. (2004). Telecommunications and economic growth: a panel data approach. Applied Economics, 36(15), 1649-1654.
  • Daveri, F. (2003). Information technology and productivity growth across countries and sectors. NBER Working Paper Series, No 227, 2003, s. 1-28.
  • Erdil, E., Yetkiner, I. H., & Türkcan, B. (2010). Does information and communication technologies sustain economic growth? The underdeveloped and developing countries case. In Sustainable Economic Development and the Influence of Information Technologies: Dynamics of Knowledge Society Transformation (pp. 147-160). IGI Global.
  • Farhadi, M., & Fooladi, M. (2011, November). The impact of information and communication technology use on economic growth. In International Conference on Humanities, Society and Culture (ICHSC) Kuala Lumpur, Malaysia, November (pp. 4-6).
  • Haldar, A., Sucharita, S., Dash, D. P., Sethi, N., & Padhan, P. C. (2023). The effects of ICT, electricity consumption, innovation, and renewable power generation on economic growth: An income level analysis for the emerging economies. Journal of Cleaner Production, 384, 135607.
  • Kılıç, N. O., Acdoyuran, B., & Calhan, H. S. (2017). Information communication technologies export and economic growth relationship: An analysis on selected countries. Journal of Business Economics and Finance, 6(4), 328-335.
  • Konak, A. (2020). G-7 ülkelerinde ihracatın ekonomik büyüme üzerindeki etkisi: Panel nedensellik analizi. Bartın Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 11(21), 232-251.
  • Kooshki, M. F., & Ismail, R. (2011). The impact of information and communication technology investment externalities on economic growth in newly industrialized countries. In Proceedings of the 2nd International Conference on Business and Economic Research (pp. 1282-1292).
  • Kurniawati, M. A. (2022). Analysis of the impact of information communication technology on economic growth: empirical evidence from Asian countries. Journal of Asian Business and Economic Studies, 29(1), 2-18.
  • Nejati, M., & Shah, M. I. (2023). How does ICT trade shape environmental impacts across the north-south regions? Intra-regional and Inter-regional perspective from dynamic CGE model. Technological Forecasting and Social Change, 186, 122168.
  • Pazarlıoğlu, M. V., & Gürler, Ö. K. (2007). Telekomünikasyon yatırımları ve ekonomik büyüme: Panel veri yaklaşımı. Finans Politik ve Ekonomik Yorumlar, 44(508), 35-43.
  • Pohjola, M. (2002). The new economy in growth and development. Oxford Review of Economic Policy, 18(3), 380-396.
  • Pradhan, R. P., Arvin, M. B., & Norman, N. R. (2015). The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries. Technology in Society, 42, 135-149.
  • Ramzan, M., Raza, S. A., Usman, M., Sharma, G. D., & Iqbal, H. A. (2022). Environmental cost of nonrenewable energy and economic progress: do ICT and financial development mitigate some burden?. Journal of Cleaner Production, 333, 130066.
  • Samimi, J., & Ledary, R. (2010). ICT and Economic Growth: New Evidence from Some Developing Countries. Australian Journal of Basic and Applied Sciences, 4(8), 3086-3091.
  • Satrovic, E., Cetindas, A., Akben, I., & Damrah, S. (2023). Do natural resource dependence, economic growth and transport energy consumption accelerate ecological footprint in the most innovative countries? The moderating role of technological innovation. Gondwana Research.
  • Sinha, M., & Sengupta, P. P. (2022). FDI inflow, ICT expansion and economic growth: An empirical study on Asia-pacific developing countries. Global Business Review, 23(3), 804-821.
  • Usman, A., Ozturk, I., Hassan, A., Zafar, S. M., & Ullah, S. (2021). The effect of ICT on energy consumption and economic growth in South Asian economies: an empirical analysis. Telematics and Informatics, 58, 101537.
  • Yousefi, A. (2011). The impact of information and communication technology on economic growth: evidence from developed and developing countries. Economics of Innovation and New Technology, 20(6), 581-596.

THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGIES ON ECONOMIC GROWTH: THE CASE OF SELECTED EUROPEAN COUNTRIES

Year 2023, Volume: 7 Issue: 2, 131 - 150, 18.10.2023

Tamerlan Mashadihasanli Haluk Zülfikar

Abstract

This paper investigates the impact of information and communication technologies on economic
growth in 35 selected European countries during 2001-2021. With rapid advancements in information
and communication technologies, understanding its influence on economic growth becomes imperative
for policymakers and researchers alike. Utilizing a comprehensive dataset, this study employs rigorous
econometric techniques to analyze the relationship between information and communication
technologies indicators and economic growth indicators by applying system generalized method of
moments method. According to the Levin–Lin–Chu unit root test, all variables are stationary at the I
(0) level except TEL which is stationary at the I (1) level. According to the results of the two-step system
generalized method of moments estimator, lagged GDP, telephone lines, mobile use, and internet usage
positively affected GDP, although consumer price index, trade and final consumption expenditure
affected negatively. In terms of significance of the effects, the effect of lagged GDP, consumer price
index, final consumption expenditure and mobile use was significant, whereas the effect of trade,
telephone lines and internet usage were not significant. The Arellano-Bond test showed that there is no
autocorrelation, and according to the Sargan and Hansen tests results, the instrumental variables are
appropriate and consistent in the model and the model has no speciation errors. From the results it can
be concluded that information and communication technologies positively affected economic growth
in 35 selected European countries. These findings strongly confirm the theoretical assumption that
information and communication technologies are now a critical strategic aspect in assuring economic
development and high long-term growth.

Keywords

ICT Economic Growth Panel Data Analysis GMM European countries

References

  • Ahmad, M., & Satrovic, E. (2023a). How does monetary policy moderate the influence of economic complexity and technological innovation on environmental sustainability? The role of green central banking. International Journal of Finance & Economics.
  • Ahmad, M., & Satrovic, E. (2023b). Role of economic complexity and government intervention in environmental sustainability: Is decentralization critical?. Journal of Cleaner Production, 418, 138000.
  • Ahmad, M., & Satrovic, E. (2023c). How do fiscal policy, technological innovation, and economic openness expedite environmental sustainability?. Gondwana Research, 124, 143-164.
  • Alper, F. Ö. (2017). Bilgi ve iletişim teknolojilerinin ekonomik büyüme ve işsizlik üzerine etkisi: Seçilmiş AB ülkeleri ve Türkiye örneği. Yasama Dergisi, (36), 45-65.
  • Appiah-Otoo, I., & Song, N. (2021). The impact of ICT on economic growth-Comparing rich and poor countries. Telecommunications Policy, 45(2), 102082.
  • Artan, S., Hayaloğlu, P., & Baltacı, N. (2014). Bilgi ve iletişim teknolojilerindeki gelişmelerin iktisadi büyüme üzerindeki etkisi: Geçiş ekonomileri örneği. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 28(1), 199-214.
  • Baldemir, E. and Keskiner, A. (2004). Devalüasyon, para, reel gelir devalüasyon, para, reel gelir değişkenlerinin dış ticaret üzerine etkisinin panel data yöntemiyle Türkiye için incelenmesi. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 6(4), 44-59.
  • Brodny, J., & Tutak, M. (2022). Analyzing the level of digitalization among the enterprises of the European Union member states and their impact on economic growth. Journal of Open Innovation: Technology, Market, and Complexity, 8(2), 70.
  • Cheng, C. Y., Chien, M. S., & Lee, C. C. (2021). ICT diffusion, financial development, and economic growth: An international cross-country analysis. Economic modelling, 94, 662-671.
  • Colecchia, A., & Schreyer, P. (2002). ICT investment and economic growth in the 1990s: is the United States a unique case?: a comparative study of nine OECD countries. Review of Economic Dynamics, 5(2), 408-442.
  • Dağdelen, İ. (2002). Bilgi ve İletişim Teknolojileri Ekonomisi: Önemi, Politikaları ve Büyüme Katkıları”, Yayımlanmamış Yüksek Lisans Tezi. Gazi Üniversitesi Sosyal Bilimler Enstitüsü.
  • DAPradhan, R. P., Arvin, M. B., Nair, M. S., Hall, J. H., & Bennett, S. E. (2021). Sustainable economic development in India: The dynamics between financial inclusion, ICT development, and economic growth. Technological Forecasting and Social Change, 169, 120758.
  • Das, A., Chowdhury, M., & Seaborn, S. (2018). ICT diffusion, financial development, and economic growth: new evidence from low and lower middle-income countries. Journal of the Knowledge Economy, 9, 928-947.
  • Datta, A., & Agarwal, S. (2004). Telecommunications and economic growth: a panel data approach. Applied Economics, 36(15), 1649-1654.
  • Daveri, F. (2003). Information technology and productivity growth across countries and sectors. NBER Working Paper Series, No 227, 2003, s. 1-28.
  • Erdil, E., Yetkiner, I. H., & Türkcan, B. (2010). Does information and communication technologies sustain economic growth? The underdeveloped and developing countries case. In Sustainable Economic Development and the Influence of Information Technologies: Dynamics of Knowledge Society Transformation (pp. 147-160). IGI Global.
  • Farhadi, M., & Fooladi, M. (2011, November). The impact of information and communication technology use on economic growth. In International Conference on Humanities, Society and Culture (ICHSC) Kuala Lumpur, Malaysia, November (pp. 4-6).
  • Haldar, A., Sucharita, S., Dash, D. P., Sethi, N., & Padhan, P. C. (2023). The effects of ICT, electricity consumption, innovation, and renewable power generation on economic growth: An income level analysis for the emerging economies. Journal of Cleaner Production, 384, 135607.
  • Kılıç, N. O., Acdoyuran, B., & Calhan, H. S. (2017). Information communication technologies export and economic growth relationship: An analysis on selected countries. Journal of Business Economics and Finance, 6(4), 328-335.
  • Konak, A. (2020). G-7 ülkelerinde ihracatın ekonomik büyüme üzerindeki etkisi: Panel nedensellik analizi. Bartın Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 11(21), 232-251.
  • Kooshki, M. F., & Ismail, R. (2011). The impact of information and communication technology investment externalities on economic growth in newly industrialized countries. In Proceedings of the 2nd International Conference on Business and Economic Research (pp. 1282-1292).
  • Kurniawati, M. A. (2022). Analysis of the impact of information communication technology on economic growth: empirical evidence from Asian countries. Journal of Asian Business and Economic Studies, 29(1), 2-18.
  • Nejati, M., & Shah, M. I. (2023). How does ICT trade shape environmental impacts across the north-south regions? Intra-regional and Inter-regional perspective from dynamic CGE model. Technological Forecasting and Social Change, 186, 122168.
  • Pazarlıoğlu, M. V., & Gürler, Ö. K. (2007). Telekomünikasyon yatırımları ve ekonomik büyüme: Panel veri yaklaşımı. Finans Politik ve Ekonomik Yorumlar, 44(508), 35-43.
  • Pohjola, M. (2002). The new economy in growth and development. Oxford Review of Economic Policy, 18(3), 380-396.
  • Pradhan, R. P., Arvin, M. B., & Norman, N. R. (2015). The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries. Technology in Society, 42, 135-149.
  • Ramzan, M., Raza, S. A., Usman, M., Sharma, G. D., & Iqbal, H. A. (2022). Environmental cost of nonrenewable energy and economic progress: do ICT and financial development mitigate some burden?. Journal of Cleaner Production, 333, 130066.
  • Samimi, J., & Ledary, R. (2010). ICT and Economic Growth: New Evidence from Some Developing Countries. Australian Journal of Basic and Applied Sciences, 4(8), 3086-3091.
  • Satrovic, E., Cetindas, A., Akben, I., & Damrah, S. (2023). Do natural resource dependence, economic growth and transport energy consumption accelerate ecological footprint in the most innovative countries? The moderating role of technological innovation. Gondwana Research.
  • Sinha, M., & Sengupta, P. P. (2022). FDI inflow, ICT expansion and economic growth: An empirical study on Asia-pacific developing countries. Global Business Review, 23(3), 804-821.
  • Usman, A., Ozturk, I., Hassan, A., Zafar, S. M., & Ullah, S. (2021). The effect of ICT on energy consumption and economic growth in South Asian economies: an empirical analysis. Telematics and Informatics, 58, 101537.
  • Yousefi, A. (2011). The impact of information and communication technology on economic growth: evidence from developed and developing countries. Economics of Innovation and New Technology, 20(6), 581-596.
There are 32 citations in total.

Details

Primary Language English
Subjects Applied Macroeconometrics, Macroeconomic Theory
Journal Section Makaleler
Authors

Tamerlan Mashadihasanli

Haluk Zülfikar

Early Pub Date October 5, 2023
Publication Date October 18, 2023
Published in Issue Year 2023 Volume: 7 Issue: 2

Cite

APA Mashadihasanli, T., & Zülfikar, H. (2023). THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGIES ON ECONOMIC GROWTH: THE CASE OF SELECTED EUROPEAN COUNTRIES. Journal of Research in Economics, 7(2), 131-150.

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