Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

The Impact of ICT Goods Imports on Economic Growth: Evidence from Asia-Pacific Countries

  • Received : 2019.08.10
  • Accepted : 2019.11.15
  • Published : 2019.11.30
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - This paper empirically investigates the relationship between Information and Communication Technology (ICT) goods imports and economic growth with a focus on the 13 Asia-Pacific economies during 2005-2016. In particular, this paper extends the study by breaking down the data of Asia-Pacific countries into High Income Countries (HICs) and Low Income Countries (LICs) according to the difference of income levels. Design/methodology - Our empirical model employs the standard growth model based on the Barro (1998)-type growth framework. Using static panel-data technique, we estimate the effect of ICT goods imports on economic growth in the 13 Asia-Pacific economies. In addition, we also estimate a difference of the ICT goods imports-economic growth link between HICs and LICs. Findings -The estimation results indicate that ICT goods import has a significant positive effect on economic growth, while ICT goods export has a positive but statistically insignificant effect on it. When we break down the panel data into HICs and LICs in order to gain further insight, ICT goods imports has been effective in spurring growth in only LICs but not in HICs. The other supplementary results show that both domestic investment (GCF) and life expectancy (LE) have a significantly positive impact on economic growth in both HICs and LICs. Originality/value - The main findings of the paper suggest that ICT goods imports has a positive effect on economic growth in only LICs but not in HICs. This result supports the so-called 'leapfrogging' hypothesis through ICT goods imports in the Asia-Pacific countries, in which LICs are gaining more from ICT goods imports than HICs.

Keywords

Acknowledgement

This present research was conducted by the research fund of Dankook University in 2018.

References

  1. Aghaei, M. and M. Rezagholizadeh (2017), "The Impact of Information and Communication Technology on Economic Growth in the OIC Countries", Environmental & Socio-Economic Studies, 17, 255-276.
  2. Awokuse, T. A. (2008), "Trade Openness and Economic Growth: Is Growth Export-led or Import-led?", Applied Economics, 40, 161-173. https://doi.org/10.1080/00036840600749490
  3. Bahrini, R. and A. Qaffas (2019), "Impact of Information and Communication Technology on Economic Growth: Evidence from Developing Countries", Economies, 7(1), 1-13. https://doi.org/10.3390/economies7010001
  4. Barro, R. (1998), Determinant of Economic Growth: A Cross-Country Empirical Study, Cambridge, MA: MIT Press.
  5. Barro, R. and X. Sala-i-Martin (1995), Economic Growth, New York, NY: McGraw Hill.
  6. Cavallo, M. and A. Landry (2010), "The Quantitative Role of Capital Goods Imports in US Growth", American Economic Review: Papers and Proceedings, 100, 78-82. https://doi.org/10.1257/aer.100.2.78
  7. Gujarati, D. (2015), Econometrics by Example (2nd ed.), New York, NY: Palgrave.
  8. Jorgenson, D. W. and K. M. Vu (2016), "The Impact of ICT Investment on World Economic Growth", Telecommunications Policy, 40, 381-382. https://doi.org/10.1016/j.telpol.2016.02.006
  9. Greenwood, J., Z. Hercowitz and P. Krusell (1997), "Long-run Implications of Investment-specific Technological Change", American Economic Review, 87(3), 342-362.
  10. Grimes, A., C. Ren, and P. Stevens (2012), "The Need for Speed: Impacts of Internet Connectivity on Firm Productivity", Journal of Productivity Analysis, 37, 187-201. https://doi.org/10.1007/s11123-011-0237-z
  11. Herrerias, M. J. and V. Orts (2013), "Capital Goods Imports and Long-run Growth: Is the Chinese Experience Relevant to Developing Countries?", Journal of Policy Modeling, 35, 781-797. https://doi.org/10.1016/j.jpolmod.2013.02.006
  12. Lee, J. W. (1995), "Capital Goods Imports and Long-run Growth", Journal of Development Economics, 48, 91-110. https://doi.org/10.1016/0304-3878(95)00015-1
  13. Lee, S. Y. T., R. Gholami and T. Y. Tong (2005), "Time Series Analysis in the Assessment of ICT Impact at the Aggregate Level-lessons and Implications in the New Economy", Information & Management, 42, 1009-1022. https://doi.org/10.1016/j.im.2004.11.005
  14. Niebel, T. (2018), "ICT and Economic Growth: Comparing Developing, Emerging and Developed Countries", World Development, 104, 197-211. https://doi.org/10.1016/j.worlddev.2017.11.024
  15. Pohjola, M. (2002), "The New Economy: Facts, Impacts and Politics", Information Economics and Policy, 14, 133-144. https://doi.org/10.1016/S0167-6245(01)00063-4
  16. Pradhan, R. P., M. B. Arvin and N. R. Norman (2015), "The Dynamics of Information and Communication Technologies Infrastructure, Economic Growth, and Financial Development: Evidence from Asian Countries", Technology in Society, 42, 135-149. https://doi.org/10.1016/j.techsoc.2015.04.002
  17. Pradhan, R. P., M. Girijasankar and T. P. Bagchi (2018), "Information and Communication Technology (ICT) Infrastructure and Economic Growth: A Causality Evinced by Cross-country Panel Data", IIMB Management Review, 30, 91-103. https://doi.org/10.1016/j.iimb.2018.01.001
  18. Pyka, A. and E. S. Andersen (2012), "Introduction: Long Term Economic Development: Demand, Finance, Organization, Policy and Innovation in a Schumpeterian Perspective", Journal of Evolutionary Economics, 22, 621-625. https://doi.org/10.1007/s00191-012-0279-z
  19. Sassi, S. and M. Goaied (2013), "Financial Development, ICT Diffusion and Economic Growth: Lessons from MENA Region", Telecommunications Policy, 37, 252-261. https://doi.org/10.1016/j.telpol.2012.12.004
  20. Steinmueller, W. E. (2001), "ICTs and the Possibilities for Leapfrogging by Developing Countries", International Labor Review, 140(2), 193-210. https://doi.org/10.1111/j.1564-913X.2001.tb00220.x
  21. Vu, K. M. (2011), "ICT as a Source of Economic Growth in the Information Age: Empirical Evidence from the 1996-2005 Period", Telecommunications Policy, 35, 357-372. https://doi.org/10.1016/j.telpol.2011.02.008
  22. Yoon, Sang-Chul (2016), "Economic Growth Effects of Grants Based on Income Level: Evidence from the Major Recipient Countries of Korea", Journal of International Trade &Commerce, 12(1), 153-169.
  23. Yoon, Sang-Chul (2018), "Servicization with Skill Premium in the Digital Economy", Journal of Korea Trade, 22(1), 17-35. https://doi.org/10.1108/JKT-10-2017-0094
  24. 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, 581-596. https://doi.org/10.1080/10438599.2010.544470